Every individual wants to ensure that their family is financially secure at all times. While life is full of surprises, it doesn’t necessarily have to be in your favour. A term life insurance plan provides financial security even when you are not around. A 20-year term life insurance policy enables you to live carefree and easy. This article explores the features and benefits of availing a 20-year term life insurance policy.
Here are a few features and benefits of a 20-year term life insurance plan.
Extended cover: With this policy, you are covered for 20 years. This ensures you can go about your life without worrying about your financial future.
Death benefit: In case of your untimely demise during the policy period, your nominee will receive a death benefit. However, this benefit depends on the amount of premium paid and is higher than your traditional life insurance plan.
Income tax benefit: With a term life insurance policy, you are eligible for income tax exemptions provided under Section 80C of the Income Tax Act. Isn’t term life insurance an ideal financial product? It secures your future as well as reduces your tax liability!
Additional riders: You can customise your term life insurance plan by including additional riders. Critical illness rider, accidental death rider, waiver of premium rider, are a few common add-ons offered by insurance companies.
Low premiums: The premium amount for a 20-year term life insurance policy is lower as compared to short-term insurance policies. Moreover, insurance companies offer flexible payment terms for convenience.
Loans: Most insurers also offer loans against term life insurance policies.
Anyone who wants to live the next 20 years of their life without any financial worry must opt for this plan. If you are someone who is most likely to retire during this period, it is a must. In case you have marriage or educational commitments of your children, you could benefit from this plan. However, it may not be ideal for young individuals who have no foreseeable financial liabilities in the near future.
If you have purchased this scheme, you are entitled to avail financial protection during the tenor of 20 years. In case of your death during these 20 years, your nominee is provided with a death benefit. However, if you pass away after the policy matures, no death benefit shall be provided. Your policy shall remain active until premiums are paid.
The 20-year term life insurance cover benefits are countless but it is imperative to make an informed decision. To begin with, understand your needs, and then do your research on different insurance companies and their products. At Finserv MARKETS, find your ideal term life insurance covers, devised specially to fit individual needs. Visit our 'Term Insurance' page and avail the best cover at feasible rates.
Yes, the premium amount for term life insurance depends on your age and health condition.
Yes, you can cancel your 20-year term life insurance policy within the stipulated period. In case you cross that period, you can choose to surrender your policy.
No, you cannot cash in your 20-year term life insurance policy.
No, you cannot transfer your term life insurance to another company.
No. You cannot extend the tenor of your term life insurance.