Term life insurance covers natural and health-related death. Options to enhance the cover by including extensions such as critical illness rider and accidental death benefit are also available.
Term insurance policy offers different policy tenures ranging from 5 to 30 years. Also, the policy offers the flexibility to pay the premium on monthly, quarterly, semi-annually and yearly basis.
Term life insurance offers larger cover at an affordable premium, unlike any other life insurance products. Moreover, once the policy is bought, the premium gets fixed for the whole tenure.
The premium paid against term insurance is tax deductible under Section 80C. Also, the payout of a term insurance claim is exempted from tax under section 10(10D), hence saving the money.