What is term insurance and how does it works


term plan life insurance

Human life is Always at risk of death because of common or incidental conditions. At the point when a man dies or becomes disabled, at that point there is loss of pay for the family. The survival for the family can end up troublesome. To shield your family from such a circumstance, you can settle on a direct life coverage approach.

Your life is positively priceless to your family persons; anyway it puts an incentive to the life of the provider in the family, so that in the event of any deplorable condition, the family person do have certain income or money that they will get. Life insurance policies provide a definite amount in the event that the insured person die on or ends up handicapped. Life coverage comes in numerous structures. The first pure insurance. other one is classic term plan which include savings and investments as well. The types of life coverage approaches are as per the following:

Term Insurance (Pure Insurance)

Endowment Policy (Savings based)

Money Back Policy (Savings based)

(ULIP)-Unit Linked Insurance Plan (Savings based, market linked)

Advantage of pure Term Plan



It provides you a high amount of coverage at a very low premium. A Term insurance policy provides you the coverage for the specified number of years by paying the small amount of premium every year. Generally term insurance policies are for the duration of 10, 15, 20, 25 or 30 years.

Death Benefit

In case if insured person die during the duration of the policy, The insurance Company will pay total amount of coverage to your nominee.

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Maturity Benefit



In case you survive till the Maturity of you term plan then you will not get anything back.

Tax Benefit

tax benefit

Yes Term plan also provide you Tax benefits under deduction u/s 80 C.

The following deaths are not covered in a term insurance plan:

  • Accidental death due to having drugs driving.
  • Death due to the participation in racing events (car racing and bike racing)
  • Death due to the participation in adventure activities (hiking, water sports, trekking, etc.)
  • Death due to pregnancy and childbirth
  • Death due to the pre-existing health condition(Medical Check-up will done before insurance).
  • Death caused due to the participation in illegal activities (as per the law of the land)
  • Death due to driving under the influence of alcohol

Can be apply online

Taking a term plan online is very easy task. just select life insurance company from where you want to take life coverage and then go to official website of insurance company and fill some details after this process you will get a call or email from insurance company and they will arrange a medical checkup near to your location. after medical check-up your policy will be active.

IRDA Claim Settlement Ratio 2016-17

Lic(Life Insurance Corporation) has highest 98.31% claim paid ratio.



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