What are the benefits of term insurance?
Term insurance offers multiple benefits to customers. Here are a few you should be aware of:
- Affordable Premiums - You can get a high value life cover from a term insurance plan by paying an affordable premium amount. Premium payments can be made either monthly/half-yearly/yearly. The earlier you buy a term insurance plan, the lower premium amount you have to pay.
- Whole Life Cover - Term insurance plans offer substantially longer coverage. Whole life insurance plans even offer coverage till the age of 99.
- Payout of Sum Insured - In case of the unfortunate demise of the person insured, the family members will receive the sum assured as a payout. They can choose for this payout to be in the form of a lump sum, an income that is either monthly or annual, a combination of lump sum and income or an increasing income. This will help take care of financial needs and household expenses among other costs.
- Critical Illness Coverage - In case optional critical illness coverage is included in your term insurance plan, you will get a lump sum payout upon diagnosis of any critical illness that is covered in the plan.
- Accidental Death Benefit - You can add the accidental death benefit rider to your term insurance plan. This will offer protection against any mishaps in the future.
- Coverage for terminal illnesses -Term insurance plans can give you lump sum payouts in case of diagnosis of terminal illnesses such as AIDS.
- Tax Benefits -You can get tax benefits on premiums paid under Section 80C along with premium paid towards critical illness benefit under Section 80D of the IT Act. The lump sum amount received by nominees as the sum assured/death benefit is also exempted from taxes under Section 10 (10D)**.
Why choose term insurance plans?
Term insurance plans offer financial security for the entire family in case of the unfortunate death of the policy holder while also helping get optional coverage for critical illnesses or accidental death. The customer is covered for a long duration while the premiums are affordable.
The ICICI Pru iProtect Smart term insurance plan offers the regular benefits of a term insurance plan with extensive critical illness coverage. Here are a few of the key features of the same:
- Longer coverage with the provision to be covered until 99 years of age.
- Extensive coverage for 34 critical illnesses1.
- Receive payouts upon first diagnosis of any critical illness covered under the plan.
- Receive full payout of life coverage upon diagnosis of any terminal illness2.
- Add accidental death benefit anytime3.
- Pay lower premiums starting from ₹ 2,400.
- Choose from four payout options, namely Lump Sum, Lump Sum + Income, Increasing Income and Income.
You can also buy term insurance online under the MWP (Married Women’s Property) Act, ensuring that your insurance amount is protected and handed over to your wife and/ or children without being claimed wrongfully by creditors4.
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** Tax benefits under the policy are subject to conditions under Section 80C, 80D, 10(10D) and other provisions of the Income Tax Act, 1961.Tax laws are subject to amendments made thereto from time to time. Please consult your tax advisor for details, before acting on above.
1. Critical Illness Benefit is optional and available under Life and Health and All in One options. This benefit is payable, on first occurrence of any of the 34 illnesses covered. The CI Benefit, is accelerated and not an additional benefit which means the policy will continue with the Death Benefit reduced by the extent of the CI Benefit paid. The future premiums payable under the policy will reduce proportionately. If CI Benefit paid is equal to the Death Benefit, the policy will terminate on payment of the CI Benefit. To know more in detail about CI Benefit, terms & conditions governing it, kindly refer to sales brochure. Critical Illness benefit is available till age of 75.
2. Refer the product brochure for the definitions, exclusions and other terms and conditions applicable for Permanent Disability due to accident and Terminal Illness.
3. Accidental Death benefit is up to ₹ 2 Crores. Accidental Death Benefit is optional and available in Life Plus and All in One options. Accidental Death Benefit cover is available upto age 80.
4. Nothing herein contained shall operate to destroy or impede the right of any creditor to be paid out of the proceeds of any policy of assurance, which may have been effected with intent to defraud creditors. In case of any third party claim in the Courts of India with regards the insurance proceeds, the amount shall be subject to the judiciary directions. Please seek professional legal advice for the applicability of this provision.
UIN: 105N151V04. Advt No.: W/II/0443/2019-20