Life expectancy has been increasing and people are also choosing to work beyond the normal 60 years. Hence, experts suggest one should choose an insurance plan that provides income replacement considering the increasing life expectancy of Indians.
Thankfully, there are some insurance plans available in the market today which offer lifetime cover or cover up to 100 years. The latest being Aegon Life Insurance‚Äôs ‚ÄėiTerm‚Äô plan which promises insurance cover up to 100 years.
Term plans are pure risk covers and have no saving element attached to them. This is the basic difference between a whole life plan and a regular term plan. Though a whole life plan offers an avenue for savings with insurance, it only provides coverage up to the age of 80 or 85. A term plan, on the other hand, provides coverage till the age of 99 or 100 years in some cases.
If you are planning to opt for a life insurance plan, find out if this suits you the best:
What‚Äôs a term plan?
Basically, term plans provide coverage for a certain period of time or years and are generally known for their affordability and large covers. If the policyholder dies during the policy tenure, the sum assured is paid out. However, in case the insured lives past the policy‚Äôs maturity, there is no survival benefit. The premiums charged, on the other hand, are generally much lower than other plans.
For instance, one big difference between a term and a whole life plan is ‚Äď in a whole life plan, one pays premium to build cash value, which can be used later even by the policyholder or can also be taken as the death benefit payout, whereas in a term insurance policy, one pays premium only for death benefit.
Benefits of `iTerm‚Äô plan:
Ageon‚Äôs iTerm is an online term plan that can be bought against a monthly or annual premium. You can also increase your life cover under this plan according to your changing needs, such as on marriage, or on the birth of a child by 50 per cent and 25 per cent respectively. There is flexibility to opt for the whole or part of the total death benefit payout as regular monthly income. The policy also offers flexibility in premium payment, you can either choose a monthly payment over a defined period of time or a lump sum amount or even a combination of both.
You can also include add-on covers such as disability benefit, critical illness benefit, and accidental death benefit. If you are diagnosed with a terminal illness, 25 per cent of the death benefit would be paid, subsequently, the total death benefit will be reduced by the amount equal to the benefit paid under this clause and all the future premiums would also be waived. However, there is no maturity benefit payable under this plan.
The premiums paid are eligible for tax benefits under Section 80(C). The death benefit payout received is eligible for tax benefit under Section 10(10)D, on the fulfillment of the conditions laid down for availing such benefits.