🛡️ What is Term Life insurance 🛡️ Term life insurance is a contract between an insurance company and the insured whereby the company guarantees payment of an agreed amount (called death benefit) to the named nominee if something untoward happens during the policy period or at the end of the policy, termed as maturity. The insured needs to pay regular premiums to the insurance company for the policy to be valid.

🛡️ Does Term Life Insurance Cover COVID-19 🛡️ All our term insurance plans cover COVID death claims. Apart from that, we also have a life insurance plan which covers COVID Hospitalization expenses. Know more about this COVID Insurance Policy

🛡️ What is a Term Insurance Plan? 🛡️ Term Insurance plan is a form of life insurance that provides coverage for a limited time-period. In case the insured person dies while the policy is still active, then a death benefit will be paid to the nominee. It is one of the most cost-effective way of protecting your family due to its affordable premiums and the flexibility of opting out at convenience. You can also change or customize a term plan if you wish. The amount of premium paid for term insurance stands eligible for income tax deduction under section 80C of the Income Tax Act.

🛡️ Why is Term Insurance Important?? 🛡️ If you buy term insurance, you are doing it for the financial security of your family, which relies on you, and to get multiple benefits such as tax exemption and planning for your child’s higher education.

🛡️ If my age is 30 and annual salary is around Rs 5 lakh, how much term insurance cover should I be looking at? 🛡️ If you are around 30, you have another 30 years of working life ahead of you. Your current annual salary is around Rs 5 lakh, but you will be getting raise every two years or so. Hence, you could look at a term insurance amount of Rs 1 crore. Remember to consider inflation as well.

🛡️ How do I Process a Term Insurance Claim? 🛡️ In general, beneficiaries and insured persons can make a term life insurance claim in either of the two following cases: (a) if something untoward happens to the person for whom the insurance policy has been taken, and (b) the policy matures. You need to inform the insurer, fill in the relevant forms, and submit the documents requested.

🛡️ What if you don’t die within the term period? 🛡️ In case of survival of the policy term, the insured does not get any return.

🛡️ I am an occasional smoker. Do I need to declare myself as a tobacco user? 🛡️ Yes! In fact, if you have smoked in the last 12 months, then you must declare yourself as a tobacco user. If information is withheld and later revealed to the insurer, it may have severe repercussions such as your policy being considered as null and void or denial of the policy benefits.

🛡️ When should I buy term life insurance? 🛡️ Whether you are in your 20s, 30s, 40s or more – it is always a good idea to get insured.

🛡️ Does term insurance not cover any particular type of deaths? 🛡️ Claims of death due to drunken driving, accidents while inebriated, self-inflicted wounds, murder, death in a war or known violent area, dangerous hobbies like skydiving, and death due to sexually-transmitted diseases are not entertained.

🛡️ Does life insurance requirement change as we grow older? 🛡️ This depends on the policy. In term plans, the basic costs, coverage limits, and requirements remain the same for the duration of the policy. For whole life plans, it may remain unchanged sometimes, but mostly they will have changing terms over that timeframe–the changes occur when you renew the policy.

🛡️ What is Term Insurance Premium? 🛡️ It is the money that the policy buyer pays the insurance company on a regular basis (monthly, twice a year, or annually) in lieu of the guarantee of the death benefit.

🛡️ Who Decides What the Term Plan Premium Amount should be? 🛡️ The insurer does, and the amount depends on several factors that can impact the insured’s life expectancy, such as age, gender, smoking habit, personal medical history, and family medical history (such as heart disease or cancer among immediate family members).

🛡️ Is the Gender of the Insured Important? 🛡️ Yes. The average Indian woman lives longer than the average Indian man, therefore, the term life insurance premium for women is lower than that for men of the same age, everything else remaining the same including smoking habit.

🛡️ Why is Nicotine-use a Factor for Determining the Term Insurance Premium? 🛡️ Nicotine use becomes a factor in determining the premium because a non-smoker is expected to live longer than a smoker–in any country.

🛡️ What if the Term Insurance Premium is not Paid? 🛡️ If premium remains unpaid one month after the due date (that is the ‘grace period’), the policy will lapse. In that case you, as the insured, will have wasted all the premiums you have paid in previous years. Additionally, your beneficiary will also not receive a pay out as the term life insurance policy will be deemed ‘lapsed’.

🛡️ What happens if the insured dies before paying the due premium? 🛡️ If the insured dies during the plan term, before he or she can pay the premium, the due premium will be deducted from the death benefit.

🛡️ If the insured pays all premiums and does not die during the term period, do they get the sum assured? 🛡️ In case of a term life insurance policy, there are no paybacks. So, if you as the insured buy a standard term insurance, and you outlive the plan, you get nothing. But do not forget that your primary objective is to create a protective financial umbrella for your loved ones. For other plans, except term plan, you get the money after the policy matures.

🛡️ Are there no monetary benefits from investing in term insurance? 🛡️ Besides insuring your family, this type of life insurance offers various tax deductions and exemptions. Under Section 80C of the Income Tax Act, you can claim a deduction of up to Rs 1.5 lakh on your policy premium. Even the proceeds that your loved ones get in your absence or the amount you get at the maturity of the term is tax-free. Learn all about tax benefits here.

🛡️ Can I create wealth from term insurance? 🛡️ Absolutely! But for that, look for a policy with maturity benefits. Most people are unaware of the additional benefits apart from the death and disability benefits. So, check out the various types of life protection plans: Here are a few to consider WHOLE LIFE: Regular premiums until death, after which the corpus is paid to beneficiaries; no expiration; ENDOWMENT PLANS: Sum assured is paid under both scenarios – death and maturity; ULIP: Risk cover plus investment options, assured pay out; MONEY-BACK: Insurance-cum-investment with periodic returns as a percentage of the sum assured.

🛡️ Is there anything else I can do with my term policy? 🛡️ Yes, insured persons have the option of taking loans against their policies without upsetting the policy benefits.

🛡️ Does Aegon Life have all this? 🛡️ Aegon Life has all this, and more. Aegon Life offers term plans, whole life, ULIP, money-back, retirement plan, and child plan. Check the website here for more details.

🛡️ Can we have 2 term insurance policies? 🛡️ You can buy as many term insurance plans as you want to fulfill your insurance needs. You can even nominate different beneficiaries for both the insurance plans.

🛡️ What are the documents required to buy term insurance plan online? 🛡️ You would be required to share some combination of age proof, address proof and identity proof, in addition to your bank details to buy an online policy. For identity and age proof you can use Aadhar card, Pan card, Passport, Voter Identification cards, school leaving certificate, birth certificate etc. For address proof, utility bills, Passport, bank a/c statement etc. are acceptable.

🛡️ Which term insurance policy should I select? 🛡️ The one which provides you with the maximum death benefits for your affordability.

🛡️ What is the difference between term insurance and whole life insurance? 🛡️ Term insurance is a life insurance policy that provides coverage for a specific amount of time, say 10, 20 or 30 years, whereas whole life insurance is a type of permanent life insurance that provides a death benefit and accumulates a cash value as long as you are alive.

🛡️ How do you know how much term insurance to buy? 🛡️ It depends on various factors, including the number of dependents you have, your investment needs, affordability, and the lifestyle you wish to provide to your family. You must factor in the living expenses of your dependents, for how long will they need it, your current loans and liabilities and future expenses such as child education when deciding your term insurance cover.

🛡️ Can term life insurance claims be rejected? 🛡️ Yes, the insurer can reject a life insurance claim on grounds of Misrepresentation of actual information

Non-disclosure of correct information

Fraud