Term insurance is the simplest form of insurance you can buy. These plans are economical compared to other programs that are offered by insurers. The premiums are affordable, and your family is protected if something happens to you. Before we look at tax saving terms plan let’s understand what term insurance is all about.
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What is Term Insurance Plan?
Term Insurance provides pure protection and covers the risk of an untimely death of the insured. Term insurance is an affordable policy to insure financial stability when you are no more. Term policies are affordable for the following reasons:
- Term policies like sbi term insurance plans are pure protection plans they have no investment value.
- The benefits will be paid to the nominee on the death of the insurer during the term of the policy
This policy offers the highest sum assured for the lowest premium as is one of the best selling plans in the market. Besides making your family financially stable and also take care of any future obligations like child’s education and unforeseen illnesses.
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How Does Your Family Benefit From Term Insurance?
Every parent would like to secure a child’s future. This is where term life insurance comes in. Your children will need education and perhaps medical attention or some other unforeseen expense. It will be a tragedy if your family is left with nothing after you are no more. The thought itself can send shivers down your spine.
In term insurance, the beneficiary gets a fixed sum assured in case of an untimely death of the insured person. For instance, if you insure yourself for a sum assured of ₹ One Crore for 40 years and you pass away within the insured period, then your nominee will receive the full sum assured.
This amount would probably be enough to meet the daily expenses and meet any present and future financial obligations. You could also clear off any pending loans
Given below are some Term Life Insurance plans by various Insurance Companies along with the indicative premium and maturity age and other details
| Insurer | Plan Name | Entry age (Min/Max) | Maturity Age (Max) | *Annual Premium of 1Cr cover |
| SBI Life | eShield | 18/65 years | 75 years | ₹ 2,779 |
| Edelweiss Tokio | MyLife + Lump sum | 18/65 years | 80 years | ₹ 4,950 |
| SBI Life | Poorna Suraksha | 18/65 years | 75 years | ₹ 3,000 |
| Bajaj | eTouch Lump sum | 18/65 years | 75 years | ₹ 5.167 |
| Aegon Life | Life Plus | 18/65 | 75 years | ₹ 11,953 |
*Indicative Figures
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Who Needs Term Plans?
Life is uncertain.-We do not know what will happen to us tomorrow or even today. Will we survive the day or the next moment is life’s multi-million question. Under these circumstances, it would be wise to opt for a term policy that will protect your loved ones and ensure their financial future. Following individuals should go for term insurance plans.
- If your family is financially dependent on you and there are no other means of income.
- If you have recently married and you plan to start a family
- You have dependents like your mother, father, spouse, and kids, etc. to take care of.
- f you are an entrepreneur running a start-up or business
As a sole breadwinner, you have a moral responsibility of protecting your family by ensuring that they are financially stable. If you pass away your family will be affected emotionally as well as financially. By taking a term policy, you at least reduce the financial burden.
As a sole breadwinner, you will also have to think about your children’s future. Being a parent is a great responsibility. Your children depend on you for anything and everything. Your responsibility begins from the time they are born till the time they settled with a good education and happily married.
Term Insurance Plans are your passport to peace of mind. It helps in a big way when you encounter a financial emergency.
Img source: /legodesk.comWhat are the best Tax Saving LIC Term Plans?
Since its inception, LIC has grown into a trusted insurance provider catering to the needs of millions of customers in India. Currently, it has three-term insurance plans that have excellent features that can be considered among the best plans offered by LIC. The plans include:
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LIC Online eTerm Insurance Plan
(I) As the name suggests – this term policy is available on the website of the Company. Since there are no intermediaries, the premium tends to be lower.
(II) It is a pure term policy where the insurer pays the death benefit only in case the insured passes away during the term of the policy.
(III). Regular premiums are to be paid to keep the policy “active.”
(IV). Riders can be attached to this plan to increase the coverage. For instance, you can add medical expenses reimbursement rider to your term plan.
(V) LIC term insurance offers different premium rates to smokers and nonsmokers. These rates are applicable for a sum assured of ₹ 50 lakhs and above.
(VI). Premiums up to ₹ 1,50,000 is exempt from income tax under u/s 80Cof the income tax act.
(VII) Any death benefits received will be exempt u/s 10(10D)
(VIII) Under this plan, the premium has to be paid annually. There is no option for bi-annual payment of premium.
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LIC Amulya Jeevan-II
(I). This LIC term plan pays a death benefit in case the insured passes away during the tenure of the policy
(II) Premiums are to be paid throughout the entire tenure of the policy.
(III) Premiums can be paid on an annual or semi-annual basis/
(IV), Riders can be attached to this term policy by paying some extra premium.
(V) Premium up to ₹ 1,50,000 is exempted under section 80C, and all benefits paid to the nominee is exempted u/s 10(100).
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LIC Anmol Jeevan-II
(I) Anmol Jeevan II is a pure term insurance plan which provides benefits to the nominees only when the insurer is not more. No benefits are paid if the insured survives the tenure of the policy term.
(II) The death benefit is equal to the sum assured agreed upon at the time when the policy becomes active.
(III) Premiums are to be paid annually or semi-annually, during the entire term of the policy.
(IV).Tax exemption is allowable under the Income Tax Act under section 80C and Sec 10(100) for the premium paid as well as the claim received.
(V). Riders can be added to the basic plan to increase the coverage.
The minimum age of entry is 18 years, and the maximum age is 60 years. Maximum age at maturity should not be greater than 70 years. The minimum policy term is five years, and the maximum term is 35 years. The minimum sum assured is ₹ 25 lakhs – there is no upper limit in this plan.
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No point in putting it off for tomorrow – it may be too late
No point in putting it off for tomorrow – it may be too late. So, don’t delay your decision anymore and invest in a term insurance plan today. Get your peace of mind and your family’s financial stability bundled together in a single package.
