10 Year Term Insurance Plans in India

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Death just like life is unpredictable and can strike anyone anytime. Thus, it is important to be ready and ensure that your loved ones do not suffer in case you are not around.

Taking a 10- year term insurance policy is one of the best steps going forward as you can ensure that the future of your family is secured and they do not bear the brunt of any financial liability taken by you.

This type of plan provides you cover for 10 years and helps you take care of your monetary liabilities as well without worrying about your family's future.

Features and benefits of availing a 10-year term life insurance policy

10-year term insurance provides you with various benefits and features. Some of them are given below:

• Low Premiums: There are certain 10-year term insurance policies which comes with low premiums. The premiums are flexible in nature and will depend on the cover chosen and your age.
• Policy Term: You are covered for a period of 10 years which ensures that you do not have to worry about your family’s future and can also clear off your financial liabilities.
• Tax benefit: You are also eligible for various tax benefits under Income Tax Act, 1961.
• Death benefit: In the unfortunate event of your death, the nominee will receive a lump-sum payment called the death benefit provided the policy is still in force. This ensures that you don’t have to worry about your family’s future as they will be financially secured even if you are not around in future.
• Surrender benefit: In case you choose to surrender your policy, you will receive a lump-sum payment called the surrender benefit.
• Planning: Buying a 10-year term insurance policy means that you can plan adequately keeping your future in mind. You can plan important events such as your children’s marriage, education, buying a home etc. and accordingly work towards fulfillment of those goals without worrying about your loved one’s future.
• Rider or add-on plans: You can also add a rider or an add-on plan to your existing policy as it adds an extra layer of protection to you. Such plans are extremely beneficial to your family if you are not around in the future.
• Loans: Certain insurers also allow you to avail a loan against such policies.

These benefits and features might vary depending on the insurance company and the plan provided. It is always advisable to check the policy first before purchasing.

Who can purchase this plan?

This type of plan is ideal for those who have immediate financial liabilities to clear. You would certainly want a plan that could ensure that your family members do not face any financial problems till they become independent, for which such plans are advisable. These type of pans also allow you take care of your children’s future goals such as their education and marriage. You can also plan accordingly in order to fulfill other important goals such as owning your own house without having to worry about the future. If you are unable to purchase a permanent life insurance where the premiums are generally high, then it is recommended that you purchase a 10-year term insurance policy for yourself.

How does this plan work?

The 10-year term insurance policy works in a very simple manner. As you purchase a plan, you will be required to pay premiums depending on your age and the cover amount. You can pay your premium as per your convenience i.e. you can pay on a yearly, half-yearly, quarterly or on a monthly basis. In the unfortunate event of your death, a lump sum amount called the death benefit will be paid to the nominee provided the policy is still in force. You won’t be eligible for any maturity benefit in case you survive the term since it is a term insurance plan. After the completion of the term, the plan will cease to exist and you will be required to purchase a new policy for yourself thereafter.

Advantages of purchasing a 10-year term insurance policy

• It is cheaper to purchase a 10-year term insurance policy due to its low premium rates. You can easily pay the premiums without having to compromise on your financial goals.
• This type of plan covers you for 10 years which allows you to take care of your immediate liabilities as well as cover your family members without them having to face the burden of dealing with any monetary problems. It is ideal to buy such kind of plans till your children are financially independent. You can also avail such type of plans if you are unable to purchase a permanent life insurance for yourself due to its high premium rates.
• You also enjoy peace of mind if only for 10 years, but it allows you to work towards achieving your financial goals without having to worry about the future. You can be at peace knowing that your loved ones are secured financially regardless of whether you are around or not.

Drawbacks of purchasing a 10-year term insurance policy

• One of the biggest drawbacks is that a 10-year term insurance policy is like a temporary solution which can provide you cover for the time when you are taking care of your monetary liabilities. Once the policy expires, you have no option but to avail a new plan for yourself, which means that the insurers will quote you a higher premium.
• Term insurance premiums are calculated based on the entry age of the policyholder/insured. Therefore, it is advisable to purchase a term insurance at a young age. The reason being that as you grow older, you are more susceptible to suffer from various health implications as compared to the time when you are young. Thus, an insurance company may not be willing to sell you a policy at low premium rates.

Some of the 10-year term insurance policies

• SBI Life eShield plan- The cover for this plan ranges from Rs.35 lakh and above.
• HDFC Life Click2Protect- This plan provides you coverage starting from Rs.25 lakh. You can choose a suitable cover for yourself depending on your financial abilities and age.
• ICICI iProtect- This plan is suitable for those who are looking to avail a low coverage. This plan also provides accidental coverage of up to Rs.2 crore.
• Max Life Online term plan- The cover for this plan ranges from Rs.25 lakh to Rs.100 crore.
• Bajaj Allianz iSecure-There are various cover amounts offered under this plan with the minimum amount being Rs.20 lakh.

Frequently asked questions

1. What happens if the insured expires after the term is over?

The nominee will not be paid any death benefits if the insured dies after the policy term has expired.

1. Are there any age restrictions when it comes to availing a 10-year term insurance plan?

Yes, various 10-year term insurance plans have a minimum and maximum entry age in order to be eligible for availing these type of schemes. The minimum age is 18 years and the maximum age of entry is 65 years. The age restriction may differ from insurer to insurer.

1. What happens if the insured fails to pay his/her premiums?

Various insurers offer a grace period of 30 days during which the premium can be paid by the insurer. The policy will lapse if the policyholder doesn’t pay the premium during the stipulated period of time.

1. Will a person get any protection benefits if the policy has lapsed?

No, the individual won’t be eligible to receive any benefits whatsoever after the policy has lapsed.