5-Year Term Life Insurance Policy in India

We all want the best for our families when it comes to health or lifestyle. Life-changing events can put stress and financial strain on your family, especially if you are the breadwinner.

In these circumstances, Term Insurance Plan is an effective way to ensure the financial well-being of your loved ones. With term life insurance, a lump sum is paid to your family in the event of your unfortunate passing during the policy term. It provides financial stability and support at a crucial time.

What is a 5-Year Term Plan?

Term insurance for 5 years provides coverage for a five-year period. In addition to annually renewable term insurance, insurers also offer this coverage option. Such a plan works well for individuals who only need short-term coverage or those who are unsure of how much coverage they need.

Term insurance provides coverage for a shorter period of time than life insurance policies. You should carefully evaluate your insurance requirements and select a policy that meets your needs.

How does this plan work?

Buying a five-year term insurance plan is not complicated. The only thing you need to do is purchase the policy and pay the premiums either all at once or as needed.

Before allowing you to purchase a 5-year fixed-term life insurance policy, insurance companies consider a number of important factors. These include age, gender, family history, current health and medication, state of residence, tobacco use and other lifestyle habits, and the death benefit amount.

The above information determines the premium amount the policyholder must pay. The nominee receives the term insurance payout in case of the policyholder’s unfortunate demise during the policy term. If the policyholder survives, the term plan does not offer a maturity benefit.

 

Key features: Term life insurance

Death Benefit: 

A term life insurance policy with a 5-year term provides a death benefit to the policyholder's beneficiary if an unfortunate event occurs during the policy term.

The death benefit is equal to the sum assured selected at the time the policy was purchased and provides peace of mind to the policyholder and their dependents.

Lower premiums for certain groups: 

Even if you are a smoker or tobacco user, purchasing a term life insurance policy can be beneficial as it allows you to enjoy lower premiums compared to whole-life policies.

Also, many insurance companies offer lower premiums for female policyholders to ensure that coverage is accessible and affordable to all.

Additional supplemental insurance: 

To increase the coverage and protection of your existing term life insurance policy, you can opt for add-ons or riders. These riders provide additional coverage and help meet your specific needs.

Tax benefit: 

If you opt for a term life insurance policy of 5 years, you will also get tax benefits under Section 80C and Section 10(10D) of the Income Tax Act 1961. This will not only provide financial protection to your family but also help you save on taxes, making it a wise investment decision.

Smart planning: 

Planning for the immediate future can be made easier with a 5-year fixed-term life insurance policy. It provides peace of mind during the policy term.

Limited premium payment option: 

Many insurance companies offer a limited premium payment option that allows you to pay premiums for a fixed term until age 60. This flexible payment option helps you plan your finances better and ensures that you do not have to worry about premium payments after a certain age.

To summarise:

Are you worried about the financial security of your loved ones? We can help put your mind at ease! HDFC Life Click 2 Protect Super is a plan tailored to meet your needs. With the option to customise coverage with add-on riders, you can extend the coverage of your policy at an affordable rate.