Life is akin to a game and like every game there is a time limit which comes with it. While we can predict the duration of this game called life, we can ensure we stay protected for as long as we are in the game. A term life insurance offers protection to our family members in the event of our death, ensuring the life of our loved ones doesn’t come to a standstill. A 10 year term insurance provides cover for a period of 10 years, subject to payment of regular premium amounts.
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Features and Benefits of 10 year term life insurance Policy
Some of the features and benefits of 10 year term life insurance policies are mentioned below.
Long coverage An individual enrolled in a 10 year plan has protection for a period of 10 years, i.e. as long as his/her policy is valid, offering peace of mind for this duration.
Planning An individual can foresee the future 10 years down the line in most cases, offering him/her the chance to plan accurately, keeping immediate requirements in mind.
Death benefit In the event of unfortunate demise of policyholder during this term period, his/her nominee will receive a death benefit. This death benefit is often higher than traditional plans.
Income Tax benefit Individuals can avail income tax benefits under Section 80C of the Income Tax Act, saving tax and reducing the financial burden on a taxpayer.
Surrender benefit Policyholders can get surrender benefits if they choose to surrender their policies before maturity.
Additional riders A policyholder can choose to avail extra benefits and cover by adding additional riders to his/her plan, enhancing the protection.
Low premiums certain 10 year policies can come with low premiums, depending on the age of policyholder. These premiums do not punch a hole in the finances of an individual and generally have flexible payment modes.
Loans Certain insurance providers offer loans against term life insurance policies.
Note These features and benefits might vary depending on the service provider and it is recommended to check with the provider first.
Who is this plan suited for
A 10 year term life insurance policy is suited for every individual who is concerned about the welfare of his/her family. It is apt for someone looking at protection for a short term, in this case around ten years, post which his/her family might require additional funds. Individuals who are expecting certain expenses towards the end of this term period can opt for it, for example, the possibility of paying for the education or marriage needs of a child in 10 years’ time. It can also be availed by individuals who cannot afford the higher premiums charged for permanent life insurance policies. This is best suited for individuals who might have commitments 10 years down the line.
How it works
A 10 year life insurance policy works in a simple way. Individuals are expected to make regular premium payments and they are covered for a period of 10 years. In the event of their untimely demise during this period, their family/nominee will receive a death benefit. Traditionally, term life insurance policies do not have a maturity benefit associated with them.
Best 10 year term plans in India
There are a number of 10 year term life insurance plans available in the market today. The list below indicates the top 5 policies in India (as of November 2015).
HDFC Life Click 2 Protect - This plan offers a host of features including extended coverage up to Rs 10 crore
SBI Life eShield Plan - This plan offers cover ranging from Rs 20 lakh upwards
Bajaj Allianz iSecure - Individuals can protect themselves with a cover ranging from Rs 20 lakh upwards
Max Life Online Term Plan - This plan offers cover ranging from Rs 25 lakh to Rs 100 crore
ICICI iProtect - This is suitable for those looking for low cover, with a cover starting at Rs 3 lakh onwards
Q. Are there any age restrictions when it comes to availing a 10 year term life insurance policy?
A. Yes, most insurance providers have age restrictions. An individual must be at least 18 years old to be eligible with a maximum age of 65 years on entry into the policy. These age restrictions might vary from company to company.
Q. What happens if a policyholder passes away after the policy term expires?
A. No maturity benefit will be paid on maturity of a term and if a policyholder dies after the term expires his/her nominee will not be eligible for any benefits.
Q. What happens if a policyholder fails to pay premiums?
A. Most insurance providers offer a grace period for policyholders to pay their premium, failing which the policy will lapse.
Q. Will an individual get protection benefits if a policy has lapsed?
A. No, an individual is not entitled to any benefits if a policy has lapsed.
GST of 18% is applicable on life insurance effective from the 1st of July, 2017