📌 What is a Term Plan?

• It’s a life insurance policy that provides financial protection to your family if you (the insured) pass away during the policy term.
• You pay a fixed premium (monthly/quarterly/yearly) for a chosen period (say 10, 20, 30 years).
• If you die during this period, your nominee (family) receives the sum assured (the cover amount).
• If you survive the term, there is no payout (unless you choose a “return of premium” option, which costs more).

💡 Key Features

• High cover, low premium: For example, a healthy 30-year-old can get a ₹1 crore cover for as little as ₹700–900 per month.
• Flexible tenure: You can choose coverage up to 60, 70, or even 80 years of age.
• Add-ons (Riders): Critical illness cover, accidental death benefit, waiver of premium, etc.
• Tax Benefits:
  • Premiums paid qualify for deduction under Section 80C (up to ₹1.5 lakh).
  • Payout (death benefit) is tax-free under Section 10(10D).

✅ Why Take a Term Plan?

• To secure your family’s financial future in case of your untimely death.
• To ensure liabilities like home loan, car loan, or children’s education are covered.
• To get large coverage at the lowest cost compared to other insurance products.