Features of Term Life Insurance Policies

Any person between the ages of 18 and 65 years are eligible to avail term life insurance policies. However, the rate of premium increases with the age of the person. That is why it is best to get the insurance as early as possible!

Some of its important features include:

They Come with Tax Benefits:

Term life insurance policies come with several tax benefits. People become eligible for tax benefits under Section 10 (10D) and Section 80C of the Income Tax Act 1961 with term life insurance.

You have Options to Choose From:

There are typically two types of term life insurance policies you can choose from- single life basis plan or joint life basis plan. As the names suggest, single life basis plan covers only one person while with the joint life basis plan people can choose other people for the policy.

Policy Period:

The term of the policies can extend from 5 years to 25 years with monthly premium payments from the insured person. For single term policies, the term can also vary between 5 to 15 years.

Survival Benefits:

Perhaps the only con of term life insurance policies, there are no survival benefits. If the insured person survives the term of the plan, he has to forego the entire premium he has paid in the policy period. However, many insurance companies have launched survival benefits with term life insurance policies as well.

You may also like to read: How can you save tax on term insurance?

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