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Benefits of surviving through a Term Insurance Plan

Benefits of surviving through a Term Insurance Plan

Benefits of surviving through a Term Insurance Plan

Term insurance plans are typically pure protection plans. Pure protection plans protect your family financially during your earning years and terminate with your earning age. For example, starting at the age of about 30 and continuing till the age of 60. Term insurance plans typically have a very low premium and terminate without any maturity value if you survive the policy term.

But the low premiums of the pure protection term plans allow you to do a lot more than just protect against a contingency. Here are term insurance plans which can help you get your money’s worth upon surviving the term.

Term Insurance with Return of Premium (TROP)

Term insurance with return of premium option allows you to receive all the premiums you have paid throughout the policy tenure back upon maturity. Thus, reducing the cost of financial protection to your family for 30 years or so to almost nil!

One among the three plan options available with iSelect Star Term Plan, life with return of premium option offers dual policy benefit.

1) On occurrence of death or on diagnosis of terminal illness, whichever happens earlier, during the policy term, sum assured on death is payable.

2) If you outlive the policy term, you will receive a return of the total premiums paid by you at maturity and the policy terminates upon payment of these benefits.

Benefits of Term plan with return of premium –

Canara HSBC OBC Life Insurance iSelect Star Term Plan is a flexible plan that caters to people of different age groups and requirements. So, if you are earning, a term insurance with ROP is ideal for you if –

1) You are single – You may have dependants at this age, your parents who might need financial support, now that you have started earning. Especially if your parents have retired, you will need a term insurance to support their regular expenses if something unfortunate were to happen.

2) You are married – If you have a working spouse, they need to be covered for the same reason you are, ensuring safety of her family and loved ones. Moreover, your non-working spouse may need greater financial support in your absence. Thus, it becomes crucial to be prepared with a backup plan.

3) You are married and have kids – Taking care of kids involve endless expenses in today’s inflation-driven world and a term plan can help support your family in maintaining their current lifestyle, fulfilling your children’s dreams even when you are not around.

Selecting the right plan with return of premium option –

Term insurance plan should ideally protect your dependents until you have built sufficient wealth, or you have financial liability. For example, if you have an extended home loan running you should have term insurance in place, even after the retirement age.

Given the present scenario of building assets using mortgage and loans, it is highly likely that you may have a loan running past your retirement day. But you also want to limit your cash outflow for the post-retirement period to only the necessary items.

Therefore, when buying a term plan, look for the following benefits to ensure the plan doesn’t start to feel like a burden –

  • An added health component - Comprehensive protection against terminal illnesses, in case something unexpected were to happen.
  • Premium payment for shorter duration – A limited premium payment option so you pay for a shorter duration, but your cover continues even post retirement.
  • Multiple payment options – Comfortable premium payment options that does not burden your pockets and fits into your budget.
  • Coverage for a lifetime – A whole life cover that covers you till 99 years of age, ensuring better security for your family’s future.

Whole Life Insurance with return of premium –

This is a comprehensive insurance plan that not only comes with the flexibility of choice of tenure and sum assured, but also promises benefits once the policy matures or you survive the term of the policy. This term plan covers your family against death until you reach 99 years of age. Meaning the plan will almost certainly pay the benefits to your family.

The insured can also take a loan at lower interest rates and even opt for the maturity payout in a staggered way or as a lump sum. This is the best life insurance plan that gives you financial protection for the lifetime. Therefore, offering three benefits under the same plan –

1) The nominees receive the sum assured on death on occurrence of death or on diagnosis of terminal illness, whichever happens earlier.

2) In case of survival till maturity, the total premiums paid are refunded to the policy holder on the date of maturity.

3) On maturity, the policy continues till you attain 99 years of age which is the extended cover period. During this period, sum assured is paid on occurrence of death or on diagnosis of terminal illness, and if you attaining age 99 years, the sum assured is paid to you.

Thus, these are the two ways you can not only receive your money’s worth at maturity from a term insurance plan, but also do more for your loved ones.

Speak to an insurance specialist now!

Frequently Asked Questions (FAQs) for Term Insurance Plans

A person can only purchase a term insurance plan till the age of 65 years, and they can choose the risk coverage for up to 99 years of age. One can easily buy the best online term plan between the age of 18 to 65 years.

This being a term insurance plan doesn't offer any payout after maturity or expiration date

Each insurance company has its own term insurance premium calculator. If you want to check out the premium quote, go for the iSelect Star term plan calculator. It gives a premium amount based on your age, gender, habits, education, and annual income.

You can purchase an iSelect Star term plan anytime between 18 to 65 years of age. This is a term plan with return of premium option – that means all the premiums paid throughout the tenure will be paid back to you if you outlive the policy.

It depends on your needs. For example, if you want to cover a child's education or wedding expenses, you have to include them in your coverage. Your premium will be calculated accordingly when you buy the best term plan in India.

If your key purpose is to give your Family financial protection, go for the best term insurance plan. And if you want some savings, in the end, go for a traditional life insurance plan. iSelect Star is a term plan with return of premium option. All the term insurance premium will be paid back to you, if you outlive the policy term.

Go for at least 12 times cover than your annual income. Or you can go as far as 20 times coverage as per your needs.

The right time is when you don't have anything to keep your Family safe from financial storms, and they rely on you for financial needs.

If you are unable to make the payment or suffering from a terminal illness, the best term insurance plan pays a part of the sum insured to treat your disease.

Term life insurance plan riders are attachment or endorsements made, while taking the term insurance policy, as a supplementary coverage to policyholders. Apart from the core death benefit, term insurance plan riders offer below-given additional benefits:

  • Accidental Death Rider When a person suffers from a terminal illness, his/her family ends up spending a significant amount in treatment and medical expenses. Accelerated death rider pays a part of the sum insured in advance to cover such costs and save the family from running out of cash.
  • Accidental Disability Rider If the policyholder can't pay the premium because of an accident or permanent disability, a sudden disability this pays the premium on behalf of the policyholder till completion of policy term or for a defined duration.
  • Critical Illness Rider If the insured person gets a heart attack, cancer, or any other critical illness, this rider pays a lump sum on valid diagnosis.
  • Premium Waiver Rider If the policyholder is unable to make payments due to income loss or disability, a premium waiver rider waives off all future premium payments. And the term insurance policy remains active until the expiration date.
  • Income Rider: This rider in a term insurance plan ensures that your family receives regular income + sum insured in case of unfortunate demise of life insured.

Anyone can go for life insurance as it offers some savings after the maturity date, but it doesn't cover the protection of your family . The best term insurance plan is solely designed for taking care of loved ones if something happens to you. Term insurance plans act as a shield between your family and sudden financial fall. They make sure that your family lives a healthy life even after you. With a little amount paid per year, you can be worry-free from the family's financial conditions.

Questions that you need to ask while Buying the Best Term Insurance Plan?

  1. 1. Are you buying a term plan with return of premium?
  2. 2. Amount of premium you have to pay based on your age, habits, education, and monthly income
  3. 3. The total number of benefits covered in the term insurance plan. Do they include benefits that you care about the most?
  4. 4. How to save money on tax if you pay for the term life insurance plan?
  5. 5. Do they offer regular income options?
  6. 6. Can you change the coverage and premium in the future?
  7. 7. Does the claim consider valid if death occurs outside India?
  8. 8. Which kind of death is not covered by a term insurance plan?
  9. 9. Can NRIs take a term insurance plan? If yes, what are the conditions?
  10. 10. Does the term insurance plan have a cash value if you decide to cancel the term insurance policy?
  11. 11. Under what circumstances can a term insurance plan be cancelled?
  12. 12. Can I pay the premiums online or make electronic payments?
  13. 13. What will happen to the term life insurance plan if the life assured starts smoking after purchasing the policy?
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