Insurance
Term Life Insurance
- It provides life coverage for a fixed period of time at a fixed premium rate.
- Nominee of the Life insured to get the total pay-out/benefit in case of untimely death of the Insured during the policy term.
- Pay-out/Benefit can be paid as a lump sum amount or a combination of lump sum & monthly pay out or as a monthly pay out.
Benefits
- Death Benefit: Nominee shall receive the total pay-out
- Lumpsum amount to take care of immediate financial liabilities
- Monthly income for sustaining lifestyle of family.
- Tax Benefit – Deduction of premium paid under section 80C of Income Tax Act, 1961
- Accidental Death Benefit – This rider option an additional sum assured over the base plan offering in case death occurs due to an accident.
- Critical Illness Benefit – This rider option offers an additional sum assured over the base plan if the life insured is diagnosed with one of the critical illnesses mentioned in the rider.
- Waiver of premium rider offers the waiver of all policy premiums in case the life insured is diagnosed with permanent disability or critical illness.
The age at which you are buying your policy is pretty important. We have put out a table giving the thumb-rules for choosing a life cover for different age groups:
| Age | The coverage |
|---|---|
| 25-35 Years | (Approx. 20 x Current Annual Income) + outstanding loans |
| 36-45 Years | (Approx. 15 x Current Annual Income) + outstanding loans |
| 46-55 Years | (Approx. 10 x Current Annual Income) + outstanding loans |
Documents Required for Term Insurance Claim Submission
Thoroughly filled claim form (provided by the insurer)
Original Policy Documents
Medical Records (admission notes, death/discharge summary, test reports, etc.)
Photo of the nominee, ID proof like PAN card, Aadhar card, passport, etc.
Death Certificate (Original and attested copy issued by local municipal authority)
Post-Mortem report, if any