A term life insurance policy provides coverage to the family members in the event of your unfortunate death. To make sure your loved ones stay safe and their life does not come to a standstill even after you are gone, you should start a term life insurance policy. Out of all the term insurance plans, a 10 year term life insurance policy has its own benefits and gives you coverage for 10 years. In this article, we will learn about the features and benefits of a 10 year term life insurance policy, who is best suited for this plan, and more. Let’s get started.

Features and Benefits of 10 Year Term Life Insurance Policy

Mentioned below are some of the important features and benefits of a 10 year term life insurance policy.

Long coverage

If you have started a 10 year term life insurance plan, it gives you protection for 10 years. This means that as long as your policy is valid, you get peace of mind for that duration.

Better planning

Once you get a term life insurance policy for 10 years, you can then plan your finances more efficiently. You can also invest in schemes keeping your immediate requirements in mind.

Death benefit

A term life insurance policy offers a death benefit. In case of your unfortunate death, the nominees will receive the amount assured. This amount is usually higher than any other plan.

Income tax benefit

You can avail the income tax benefits available under Section 80C of the Income Tax Act thus reducing your tax burden.

Surrender benefit

A 10 year term insurance policy also gives you a surrender benefit if you choose to surrender the policy before its maturity.

Additional riders

You can choose from extra benefits and cover by adding different additional riders to your plan. This further enhances your protection and cover offered by the policy.

Low premiums

Several 10 year policies come with low premiums. The premium of your policy depends on your age and term life insurance policies are known for low premiums. Generally, such plans come with flexible payment modes.

Loan facility

Certain insurance providers also give a loan offer against a term life insurance policy.

Who is this Plan Suitable to?

A 10 year term life insurance policy is ideal for you if you want coverage for a shorter period of time. In this case, the short duration is of 10 years after which your family might require additional funds. If you are anticipating any expenses towards the end of this tenor, you can opt for this 10 year term life insurance policy.

For example, if there is a possibility to pay for your children’s education or marriage in 10 years time, you can go for this policy. In other words, if you have financial commitments 10 years down the line, this policy is for you. If you cannot afford higher premiums of a permanent life insurance policy with a longer duration, you can purchase this 10 year policy.

How Does a 10 Year Term Life Insurance Policy Work?

A 10 year term life insurance policy works like all other term insurance policies. You just have to pay the premiums regularly which are covered for 10 years. In the event of your unfortunate death during this tenor, your family or nominee will get the death benefit. Usually, term life insurance policies do not give any maturity benefit.

Conclusion

Before investing in a 10 year term life insurance policy, you should first carefully analyse your goals and then decide on details like the cover amount, premium frequency, among others. With a 10 year term life insurance policy, you can plan your finances accordingly. To choose from a set of life insurance policies, visit the official website of Bajaj Markets now!

FAQs

Can you cash out term life insurance?

No, you cannot cash out a term life insurance policy as no cash value is accumulated during the tenor of coverage.

What happens to the money at the end of term life insurance?

At the end of term life insurance, your coverage ends. In case of your unfortunate death during this period, your family or nominee will receive the death benefit. If you outlive the policy, the money invested usually stays with the insurance provider.

Can I get my money back at the end of a 10 year term life insurance policy?

Usually, if you outlive the 10 year term life insurance policy, you will not get the premiums back.

Can I surrender my 10 year term life insurance policy?

Yes, you can surrender your 10 year term life insurance policy.

Can I take a loan against my 10 year term life insurance policy?

Yes, some insurance providers offer a loan against a term life insurance policy.

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