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Level Term Insurance Policy

By Finserv MARKETS - Aug 25,2020
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Level Term Policy Definition & Meaning

Level Term Policy

Many people looking for a life insurance product tend to invest in term insurance plans. After all, term insurance is the most affordable life insurance product available in the market. The policy provides death benefits to the beneficiaries in case of the policyholder’s untimely death.

Insurers in India offer a variety of term insurance plans, each with a specific purpose. In this section, we will discuss level term insurance in elaborate details.

What is Level Term Insurance?

A level term insurance plan is much like a basic term insurance plan. However, the premiums paid towards the policy and the coverage remains the same throughout the tenure. The policy is purchased for a definite period – five, 10, or 30 years. It is the most common and the purest form of term insurance plan available in the market.

To understand level term insurance in detail, let us consider an example.

Illustration:

Let us assume that Rashmi bought a level term insurance plan with a fixed tenure of 30 years that offers coverage of INR 1 Crore. The premiums paid towards the policy throughout the tenure remains the same. In case she dies during the policy term, the beneficiaries of the plan will receive INR 1 Crore. However, if Rashmi dies after the completion of the tenure (that is 30 years), then no payment will be made to the beneficiaries.

Benefits of Level Term Insurance

Based on the illustration above, it is evident that level term insurance is similar to a basic term insurance plan. The policy is known to provide financial security to the family members in case the insured dies.

Besides this, a few other level term insurance benefits are as follows –

  • The policy comes with a fixed tenure and guarantees death benefits to the beneficiaries of the plan.
  • You can secure the financial future of your loved ones, especially in your absence.
  • The policy coverage can be used for mortgage repayment. That way, your loved ones will not have to bear the burden of your liabilities after your death.
  • You can enhance the scope of the policy with critical illness cover.

If you are looking for a level term insurance plan, consider buying the Smart Protect Goal term plan at Finserv MARKETS.

Term Insurance Plans at Finserv MARKETS

The term insurance plans available on Finserv MARKETS offer extensive coverage and can be customised to fulfil yours and your family’s rising needs. In fact, you can enhance the scope of the policy with benefits such as –

  • Critical illness benefit
  • Return of premium benefit
  • Waiver of premium benefit
  • Accidental death benefit
  • Income return benefit

You can use the term insurance calculator to determine the premiums to be paid on your chosen coverage. It is advisable to select a sum assured amount that is sufficient to cover the future finances of your family, even after your death.

To Conclude

Life uncertainties can happen at any time. There is nothing that we can do to avoid any unfortunate event. But we can certainly protect the financial future of our family members with the right term insurance plan.

So, secure your family future with Term Insurance Plans available on Finserv MARKETS. Read more about term insurance tax benefits by visiting our website.

Finserv MARKETS, a subsidiary of Bajaj Finserv, is a one-stop digital marketplace that has been created for consumers on the go. It offers 500+ financial and lifestyle products, all at one place. At Finserv MARKETS, we understand that every individual is different. And that’s why we have invested in creating a proposition – Offers You Value. A value proposition that ensures you get offers which are tailor made for you. We also offer an amazing product range and unique set of online offers across Loans, Insurance, Investment, Payments and an exclusive EMI store. Be it in helping you achieve your financial life goals or offering you the latest gadgets, we strive to offer what you are looking for. From simple and fast loan application processes to seamless and hassle-free claim-settlements, from no cost EMIs to 4 hours product delivery, we work towards fulfilling all your personal and financial needs. What’s more! Now enjoy the same benefits in just one click with our Finserv MARKETS App.

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Bajaj Finserv Direct Limited ("BFDL"), erstwhile Bajaj Financial Holdings Limited is a registered corporate agent of Bajaj Allianz Life Insurance Company Limited and Bajaj Allianz General Insurance Company Limited under the IRDAI composite registration number CA0551 valid till 10-Apr-2021. BFDL also renders services to Bajaj Finance Limited (‘BFL’) and Bajaj Housing Finance Limited (‘BHFL’) (referred hereinafter as ‘Lending Partner’) in sourcing of customers, providing preliminary credit support activities, fulfilment services and post-acquisition customer services related to lending business. Registered Office: Bajaj Auto Limited Complex, Mumbai – Pune Road, Akurdi, Pune – 411 035 CIN: U65923PN2014PLC150522