When you understand the features of a term plan, you can have a clearer idea about the meaning and benefits of term insurance. Some of the hallmark features of term plans include the following:

Affordability: Term insurance policies are some of the most affordable life insurance products. The premiums you have to pay for term plans are usually much lower than other life insurance policies. You can get life cover up to ₹ 1 crore for a monthly premium as low as ₹ 441^*.

Age of entry: With the minimum eligibility age of 18 years, you can get term plans early in life. Buying a term plan at a young age helps you get sizeable coverage at very reasonable premiums.

Policy Term: Term insurance provides coverage for specified number of years, known as the policy term. In case of an unfortunate event during this period, your nominee will receive the sum assured in your policy.

Term insurance tenures can start from 5 years and extend up to your 99^th birthday if you choose the whole life insurance option. Depending upon how long your loved ones might need your financial support, you can select the right policy term for your needs.

Maturity Benefit: Term insurance provides financial protection to your family in case of an eventuality. It is not meant to be used as an investment instrument. Thus, it does not offer any return on the premium you pay in the fortunate event that you survive the policy tenure.

However, the very absence of this investment component makes term plans so affordable. One of the unique features of term insurance is that your entire premium goes into securing your insurance cover. No part of it is deducted for investment purposes. Thus, you can get substantial coverage, enough to cover the current and future expenses of your loved ones at pocket-friendly premiums.

Also, you can opt for term insurance with a return of premium feature if you want some maturity benefits. After the policy matures, you will get back the entire premium you had paid throughout the policy tenure with such plans.

Flexibility in Premium Payments: You can pay your term plan premiums as per your convenience. Annual, semi-annual, quarterly, or monthly premiums are some of the premium payment frequencies you can choose. Such regular premium payments are ideal for salaried individuals with a stable income.

You can also go for a one-time, lump sum premium payment if you have some surplus funds lying unused. Alternatively, you can go for a limited pay option and pay off your premiums within the initial few policy years. Your life cover remains active for the entire term plan tenure.

Thus, if you are self-employed, with variable cash inflows, you can take advantage of such single pay or limited pay options and keep your loved ones financially protected against life’s uncertainties.

Life cover: A term plan keeps your family secure from financial challenges if an unfortunate event occurs. It provides a life cover of your choice at affordable premiums. With this life cover, your loved ones get an assured sum in case of an unwanted incident during the policy period. The payout can help your family avoid compromising with the lifestyle you want for them in your absence.

Additional add-ons: You can add riders or add-on benefits to your term insurance policy to extend the scope of your base coverage at a nominal cost.

Various types of riders are available with term plans, such as:

Increasing term insurance: Term plans allow you the flexibility to update your policy as per the changing financial needs of your life. You can increase the sum assured or add riders to your plan at your life’s key milestone events.

Thus, after marriage, or when you welcome your children into your family, and your financial liabilities increase, you can enhance your coverage. It enables you to provide your loved ones with the right financial back-up against unforeseen situations.

Tax benefits: Term plans offer many tax⁶ benefits. Under Section 80C of the Income Tax Act, 1961, you can claim deductions up to ₹ 1.5 lakh on the premium you pay for your term plan. The payouts are also tax-exempt under Section 10(10D). Moreover, with an add-on health-related rider, you can avail of tax⁶ benefits under Section 80D on the premium paid for the rider.

Premium waiver: This benefit waives off all your future premiums in the case of a disability⁹ caused by an accident. Hence, even if you fail to pay the premiums due to any income loss from a disability, you will still be able to keep your family’s future secure.

Get all these features and secure your-self and your family with ICICI Pru iProtect Smart, which ensures a safety net for your family in your absence.