One can never be sure regarding what can happen in life, and death is one of the most unpredictable events that can happen at any point of time. Hence, it becomes necessary to buy an insurance plan. 5 years term insurance plans are ideal for those with immediate financial liabilities and want to ensure that their family is safe and secure from a monetary point of view regardless of whether they are around or not.
Availing a 5-year term life insurance policy means that one will get various benefits. Some of the features which make a 5-year term life insurance policy special are:
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.
This plan is ideal for those who want to provide cover to his/her family and other loved ones. These plans are perfect if the insured has immediate financial liabilities to take care. In case the policyholder dies due to unforeseen circumstances, the sum assured can help the nominee clear of the liabilities. This ensures that the insured’s loved ones are secured financially and they do not face any monetary burden.
These plans are also ideal for those who want to take care of their children’s education and ensure that his/her kids are not devoid of it in any manner regardless of whether the insured is there or not in the future.
This type of plan works in a very simple manner. The insured purchases a 5-year term insurance policy and has to pay premiums which can be either single term payment or different premium payment modes might be available depending on the plan. In case of the death of the insured, the death benefit is paid to the nominee provided the policy is still in force. Such type of term insurance provides no benefits including the maturity benefit. No benefit is payable if the individual dies after the policy period ends. The insured will be eligible for various tax benefits under Section 80C of the Income Tax Act, 1961.
Some of the 5 years term insurance policies which can be availed by a person are:
Proper documents need to be furnished by the nominee including the death certificate, policy documents, hospital/FIR reports and a proper identity proof.
The settlement of the claim will depend on the plan and the insurer generally. An insurance company does not take more than 30 days to settle a legitimate claim.
The entry age may differ from plan to plan, and insurer to insurer. Generally, the maximum age might be 60 years in order to be eligible for such plans.
Certain plans do offer discounts on a large sum assured. The discount can range from 0.5% to 1% on the premiums.
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