5 Year Term Life Insurance Policy in India
Life is filled with uncertainties. There is always something that can arise out of nowhere and can cause you or your family a lot of problems. And sadly, you can’t always predict those uncertainties. But what you can do is give your family the necessary financial protection during that tough time. And that will be possible by purchasing a term plan.
A term insurance plan provides protection and financial security to the family in case something happens to the policyholder within the policy term. You might also be interested in learning that the best term insurance plan in India has a policy tenure of 5 years.
This is why if you are looking to purchase the best term insurance plan in India in 2021, then you should look at a five years term life insurance policy. And we will help you with just that today.
The Features of the Best Term Plan in India for Five Years
Most five years term life insurance plans fall under the category of the best term insurance in India. Let’s first start by going through the features of this plan.
1. Death Benefit
If anything happens to the policyholder within the policy term, then the nominee of the policyholder will be entitled to a death benefit. This death benefit will be the sum assured chosen at the start of the policy term.
2. Save Tax
Every policyholder should know that the premium paid towards a term life insurance policy is eligible for tax deductions. This is in accordance with Section 80X of the Income Tax Act, 1961.
3. Optional Riders
If you want to enhance the overall protection offered by your existing term plan, then you can do that by getting additional riders. These riders are available at an extra cost to the premium amount.
4. Cheaper
One of the best features of a five years term life insurance plan is that it comes with low and affordable premium rates. In most cases, the premium amount is lower for younger people. These policies also provide the policyholder with the flexibility to select different payment modes and premium amount options.
5. Financial Planning
A five years term life insurance plan can help you plan for your future expenses in advance. This will ensure that you don’t suffer from any major financial difficulty during that time.
It should also be noted that these features can vary from one insurance provider to another.
The Best Five Years Term Insurance Plans
Currently, there are two-term insurance plans that can be classified as the best five years term insurance plans. Both of these plans are discussed in this section.
Aegon Life iTerm Insurance Plan
The Aegon Life iTerm insurance plan is a non-linked and non-participating term insurance plan that provides financial security to the entire family in the absence of the policyholder. Under this plan, the policyholder can opt for additional insurance cover as and when the need arises in the future.
Some benefits and features of this plan are:
- Life coverage till the age of 100 years
- Option to pay the premiums for a limited period
- Flexibility in terms of choosing the death benefit payout
- Option to increase life coverage
- Additional riders available like accidental death, critical illness, and critical illness related to women
- Lower premium rates for women and non-smokers
- Inbuilt terminal illness benefit
- Premium paid and benefits received are eligible for tax benefits under Section 80C and 10 (10D) of the Income Tax Act, 1961
The eligibility conditions of the policy are mentioned in the table given below.
| Eligibility |
Criteria |
|
Entry Age |
The minimum entry age is 18 years and the maximum entry age is 65 years |
| Maturity Age |
The maximum age of maturity for this policy is 100 years |
|
Policy Term |
A customer can opt for any policy term between 5 years to 67 years or opt for a fixed-term coverage till the age of 100 years |
| Premium Payment Term |
Single pay option and equal to policy term option is available |
|
Total Sum Assured |
A minimum of INR 25 lakh limit of the total sum insured is applicable in this policy. There is no maximum limit applicable |
| Premium Payment Mode |
Options available are single, annually, semi-annually, and monthly |
SBI Life eShield
The SBI Life eShield is an online pure term non-linked and non-participating insurance plan. This plan comes with two types of payout benefits. Some features of this plan are:
- Inbuilt accelerated terminal illness benefit provided
- Additional rider options like accidental death benefit and permanent disability benefit are available
- Medical second opinion service
- The premium amount paid and benefits received are eligible for tax benefits under Section 80C and 10 (10D) of the Income Tax Act, 1961
- The sum insured under this policy automatically gets increased by a simple rate of 10% at the end of every 5th policy year
The eligible criteria applicable under this term life insurance are mentioned in the table given below.
|
Eligibility |
Criteria |
|
Benefit Structures |
Level cover and increasing cover |
| Entry Age |
The minimum entry age is 18 years and the maximum entry age for level cover is 65 years while the maximum entry age for increasing cover is 60 years |
|
Age at Maturity |
For level cover benefit, the age of maturity is 80 years and for increasing cover benefit, the age of maturity is 75 years |
| Total Sum Assured |
A minimum limit on total sum insured value is INR 35 lakh and there is no maximum sum insured limit |
|
Premium Payment Mode |
Options available are yearly, half-yearly, quarterly, and monthly |
| The Premium for Non-Yearly Modes |
Options are half-yearly, quarterly, and monthly |
|
Policy Term |
The total policy term can range from 5 years to 80 years |
| Premium Payment Term |
Same as Policy Term |
These are the best five years term plans that are currently available in the market. If you wish to provide financial coverage to your spouse and your children when you are gone, then you can rely on these term insurance plans to give you the necessary coverage.
