In India, awareness about the features of term insurance policy has grown, especially among young earners and families who seek long-term protection. With life becoming increasingly complex and interconnected, more people now realise the need to secure their families’ futures with such a term insurance policy. Let’s find out the newest developments in term insurance, highlight its essential features and know why trusted players remain a preferred choice for millions of Indians.
A. Latest updates that shape term insurance in India
The Indian insurance sector continues to witness radical changes, led by regulatory reforms and changing customer expectations. Here are some of the key updates that you must be aware of:
Increased transparency and standardisation
The IRDAI has implemented guidelines to make term insurance policies more transparent and standardised. This includes simplified policy documents, clear mention of inclusions and exclusions, and better customer education. With insurers such as Bajaj Life Insurance, customers receive concise and easy-to-comprehend information, and reduce ambiguity at the time of claim.
Enhanced sum assured and flexible premium payment
Recent updates have seen insurance companies increases the maximum sum assured under term insurance policies. Many of these now cover sums upwards of Rs. 1 crore, ensuring families can maintain their standard of living even after the policyholder’s demise. Flexible premium payment modes such as monthly, quarterly, semi-annual or annual options are now standard and add to the overall financial convenience.
Introduction of accelerated claims process
Speed of claim settlement is now a key differentiator. IRDAI’s push for digitalisation means leading insurers such as Bajaj Life Insurance use advanced online claim portals, e-verification and speedy documentation. Many term plans now promise claim settlements within 24 hours for eligible cases, which lower stress for the nominee.
Additional riders and customisation
Recent term plans offer a variety of riders that can be attached for comprehensive coverage. Riders such as critical illness, accidental death benefit, and waiver of premium ensure broader protection against unexpected events, without the need for separate policies. The flexibility to enhance coverage as per changing life stages makes policies from Bajaj Life Insurance particularly attractive.
Focus on return of premium plans
A new feature that has gained popularity is the ‘return of premium’ benefit. Under these variants, if the policyholder survives the policy term, all premiums paid, excluding GST and certain charges, are returned. This addresses hesitations about “losing money” if no claim arises and is a unique selling point embraced by many insurers today.
B. Key features of term insurance policy
Your choice of the right term insurance policy hinges on your knowledge of its core features. Below are a few of the most important features of term insurance policy which make it a wise choice for every Indian:
High life cover at affordable premiums
A notable advantage of term insurance is the high sum assured available at relatively low premiums. For instance, with Bajaj Life Insurance, premiums for a cover of Rs. 1 crore can start as low as Rs. 500 per month for a healthy, young non-smoker.
Multiple premium payment options
Policyholders can choose from regular, limited or single premium payment options, which allow you to select a plan that aligns with your financial goals and cash flows.
Long policy tenure
Many leading policies, including those from Bajaj Life Insurance, come with a coverage up to 75-85 years of age. Some even allow coverage up to a lifetime. Thus, you can now protect your dependents for an extended period and ensure peace of mind.
Critical illness and disability riders
Term plans have evolved to include riders such as critical illness cover, which provide a lump sum amount on diagnosis of serious health conditions. Besides, accidental death or disability riders also ensure financial security against loss of income due to such crises.
Tax benefits
Premiums paid on a term insurance policy usually qualify for tax deductions under Section 80C of the Income Tax Act, 1961, and the proceeds from the policy are exempted under Section 10(10D). This makes these term insurance plans tax-efficient for Indian taxpayers.
C. Additional benefits ensured by modern term insurance policies
Below are a few additional benefits a good term life insurance policy also covers:
Terminal illness benefits
Some policies provide an early payout on the diagnosis of terminal illnesses, helping policyholders access funds for medical treatment and other critical needs. Bajaj Life Insurance provides such features in select term plans.
Step-up and step-down options
Modern policies allow policyholders to review and alter the sum assured during significant life milestones, such as marriage, childbirth or home purchase. This ensures optimal coverage throughout your life.
Female-specific benefits
Many credible insurers provide the option of lower premiums and additional benefits such as critical illness covers for women-related cancers, which make these term plans even more inclusive.
Spouse inclusion advantage
Certain term insurance policies provide options to cover both spouses in a single policy at competitive premiums. This enhances overall family protection.
Worldwide coverage
Geographical mobility is no longer an issue. Term insurance policies today, especially by top insurers, offer global coverage. Policyholders and their nominees are entitled to all policy benefits, regardless of their place of residence.
D. Factors to consider before buying a term insurance policy
Here are a few important factors you must consider before you opt for a term insurance plan for your family:
Assess the right sum assured
Calculate your family’s monthly expenses, future liabilities such as loans, and major financial goals, such as your child’s education or marriage. Usually it is advised that the sum assured should be 10x your annual income.
Choose an adequate policy term
Opt for a policy tenure that covers you till your financial responsibilities are likely to end. This often means coverage till your children are independent or debts are fully repaid.
Evaluate riders and additional benefits
Customise your coverage with relevant riders. For instance, if there are lifestyle disease risks in your family, a critical illness rider can be of great help in the long run.
Disclose all relevant information
Honesty in sharing details regarding health, income and habits (including smoking, drinking) is vital. Non-disclosure of any such relevant fact can lead to claim rejection.
Compare different providers
Remember to always compare various products from multiple insurers, such as Bajaj Life Insurance, to find the best premium rates, benefits and claim settlement record.
E. Easy steps to buy a term insurance policy online
- Visit your preferred insurer’s website or mobile app
- Enter details such as age, profession, annual income and desired coverage.
- View and compare plan variants along with features of term insurance policy.
- Select necessary riders for extra protection.
- Fill in personal and medical details. Use e-KYC for faster approval.
- Pay the premium online by choosing an appropriate frequency.
- Download your e-policy. Your policy becomes active once documentation is verified.
Common myths about term insurance policy debunked
Only breadwinners need term cover: Dependents such as homemakers also contribute immensely to a household. Their absence can cause financial strain from outsourcing duties, making their insurance equally crucial.
Young people do not need term insurance: It is beneficial to purchase a policy early in your career. Younger applicants enjoy lower premiums and a better chance of claim acceptance due to fewer health concerns.
Claims rarely get processed: With digitalisation and proactive customer support, claim settlement ratios for reputed insurers such as Bajaj Life Insurance have steadily improved.
Term insurance is expensive: Contrary to popular belief, term insurance comes with a high cover at affordable yearly or monthly premiums. The surge in online policies has made these plans even cheaper.
Conclusion
Staying updated on the latest developments in the term insurance policy market is vital for sound financial planning. The features of term insurance policy today have evolved to offer comprehensive, flexible and affordable protection suited for every Indian family. With providers such as Bajaj Life Insurance combining innovation, transparency and reliable service, securing your family’s future is now easier and more accessible than ever. Choose the right term plan after careful assessment of your needs and enjoy peace of mind knowing your loved ones will always be protected.
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