A term insurance plan is a life insurance policy that works purely to serve the future needs of your family members. A term policy offers a high sum assured at a low cost. This high sum assured will help your family overcome the difficulties that accompany the loss of income due to the absence of the insured family member.

So, how much assured sum you will need? You can calculate assured sum as well as premium amount easily with the help of an online term insurance calculator.

Know your term insurance eligibility online before you invest in term insurance plans.

Also Read: Top 10 reasons why Term Insurance Plans are must to have

Life is rarely certain and unwanted events can create havoc with the best laid plans. The absence of a family member causes extreme turmoil - physically, emotionally and financially. Your life is precious, especially if you are the breadwinner of the family. A term insurance policy takes care of the monetary needs of your family even when you are not around. It helps your family settle unpaid debts & loans, fund the child’s education and deal with day to day living expenses.

Buying the term insurance plan online is really simple – just make a note of the following documents you need to attach with your application form:

• Age proof
• ID proof
• income proof

Please check whether your insurer offers the following benefits before buying a term plan:

• Claim Settlement Ratio- The higher the ratio, the more efficient the insurance provider is with settling insurance claims. Aviva had a high claim settlement ratio of 96.06% last year.
• Sum Assured- This is the amount of money that the plan will pay in case of the insured’s demise during the plan tenure. It is important to opt for appropriate sum assured such that your family is taken care of financially in your absence.
• Flexible Payout- The insurer may offer flexibility with respect to payment of claims. The claims can either be paid as a lump sum or at regular intervals i.e. monthly, quarterly or yearly.
• Tax Benefits- The term insurance premiums fetch you tax benefits under Sec 80C of the Income Tax Act, 1961.

Aviva term plan offers you the best term insurance plan with the multiple benefits:

• Term plans provide high sum assured at affordable premiums
• Help cover financial liabilities of the family
• Offer flexibility of payout as lump sum or regular income
• Offers riders which provide coverage against critical illness and disability at nominal cost
• Provide tax benefits on premium paid as per tax law

There is no defined formula to identify the amount of life cover you should opt for; it varies from person to person.
The table below gives broad guidelines which can be used as a rule of thumb.

A term plan is the most elementary form of life insurance. By purchasing a term insurance policy, you, as the ‘policyholder pay a nominal amount as ‘premium’ for a certain period or tenure. The earlier you purchase a term plan, the lesser will be the premium (per year) you have to pay. In case, you meet an unfortunate incident resulting in loss of your life, your family or ‘nominee’ is given the ‘sum assured’ or ‘cover’ - large lump sum amount to meet your financial liabilities. In case you wish to have a additional coverage beyond just life cover, you can choose riders, such as critical illness and disability.

Like all life insurance products, term insurance also offers tax benefits. Primarily, you get tax rebates for the premiums paid under your policy. Premium paid for a term plan will offer tax benefits under sec 80C of the Income Tax Act. Any payout made to the beneficiaries is tax free.

Death cover under all circumstances except the following:

• Death due to any pre-existing medical condition not mentioned in the policy term
• Death due to any illegal activity
• Suicide within the first year of policy tenure