Question 1

What is term life insurance and how does it work?

Accepted Answer

Term life insurance is a pure protection plan that provides life coverage for a specific term. If the insured person dies during the policy term, the nominee receives the sum assured. It offers maximum coverage at minimum premium with no maturity benefits.

Question 2

How much term insurance coverage do I need?

Accepted Answer

Ideally, your term insurance coverage should be 10-15 times your annual income. Consider factors like outstanding loans, family expenses, children's education costs, and future financial goals while determining the coverage amount.

Question 3

What are the tax benefits of term insurance?

Accepted Answer

You can claim tax deduction up to ₹1.5 lakhs on premium paid under Section 80C. The death benefit received by nominees is completely tax-free under Section 10(10D) of the Income Tax Act.

Question 4

Can I buy term insurance online?

Accepted Answer

Yes, you can easily buy term insurance online. The process is simple, quick, and often cheaper than offline purchases. You can compare plans, calculate premiums, and get instant policy issuance online.

Question 5

What happens if I stop paying premiums?

Accepted Answer

If you stop paying premiums, your term insurance policy will lapse after the grace period (usually 30 days). A lapsed policy provides no coverage, and you won't get any money back as term insurance has no cash value.

Question 6

At what age should I buy term insurance?

Accepted Answer

The best time to buy term insurance is when you're young and healthy, ideally in your 20s or early 30s. Premiums are lowest at younger ages and remain fixed throughout the policy term.

Question 7

Is medical examination required for term insurance?

Accepted Answer

Medical examination requirements depend on your age and coverage amount. Generally, it's required for higher coverage amounts or older applicants. Some insurers offer instant approval for lower amounts without medical tests.

Question 8

What is the claim settlement ratio in term insurance?

Accepted Answer

Claim settlement ratio (CSR) is the percentage of claims settled by an insurance company out of total claims received. A higher CSR indicates better reliability. Look for insurers with CSR above 95%.

Term Life Insurance - Secure Your Family's Future Today

Why Do You Need Term Life Insurance?

Top Term Insurance Companies

HDFC Life

ICICI Prudential

SBI Life

Max Life

Bajaj Allianz

LIC

Secure Your Family's Future Today