Term insurance benefits and advantages

Nov 20, 2017 | 2 years ago | Read Time: 2 minutes | By iKnowledge Team

It gives you a life cover to protect your family’s finances in your absence. Term plans are essential.  Read more

A term insurance policy is a time-bound insurance plan that requires you to pay a certain premium towards your policy at regular intervals. In the unforeseen event of your demise, the policy’s sum assured is awarded to your nominee.

Benefits of Term Insurance

    1. Value for money
    2. Longer coverage
    3. Flexible death benefits
    4. Increasing life coverage
    5. Benefits for women and non-smokers

    6. Riders
    7. Tax benefit

Take a minute to learn more about each of them.

Value for money

Term insurance gives you value for money – Aegon Life’s term insurance plans are not just comprehensive but also cost-effective. The premiums are affordable while the coverage is high. This is one of the best advantages of term insurance plans.

 Longer coverage

While most term insurance plans generally cover individuals up to 70 years of age, Aegon Life’s term insurance plans offer you coverage up to 80 years of age. This makes it one of the plans with the longest tenure.

Flexible death benefits

One of the best term life insurance advantages that Aegon Life offers you is the flexibility in its death benefit pay-outs. Here, you are offered a couple of options. The first is a lump sum payment. The second option is a stipulated amount of fixed monthly income for 100 months. You may also choose a combination of the first and the second option.

Increasing life coverage

Aegon Life’s term policies allow you to increase the amount of life coverage depending on the different stages of life you are in, which just needs to be approved by the insurer.

Benefits for women and non-smokers

Another one of the term insurance benefits of Aegon Life’s term policies is that women and non-smokers are charged lower premiums.

Riders

Aegon Life’s term insurance plans offer you a variety of both in-built as well as add-on riders. For example, Aegon Life’s iTerm insurance plan comes with an in-built death benefit and critical illness rider. Similarly, plans like the iSpouse insurance plan enjoy a waiver of premium if either of the spouses are diagnosed with a terminal illness. You are also allowed to add on more riders depending on the disability and critical illness you wish to cover in your term policy.

Tax benefit

One of the many term insurance benefits is that its premiums and sum assured are exempted from tax, according to Section 80C of the Income Tax Act, 1961.

So while you’re still young and hearty, get a term insurance plan and secure the future of your family at a relatively low cost.

To know about AegonLife’s life insurance products, visit our home page.


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