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Term Insurance FAQs

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1. What is term life insurance?

A term plan provides a lump-sum to the family of the policyholder in case of his/her demise during the policy period. A pure term plan provides substantial life insurance cover at affordable premium.
Financial advisors often advise taking a term insurance as the first step towards financial planning. This is because after taking a term insurance plan, you can then begin to invest in other avenues to build your corpus for future goals..

2. Why is term insurance important?

A term plan is important for the following reasons:

  • A term insurance provides substantial life insurance cover at affordable premium
  • The sum assured helps your family members live the same standard of living as they live when you are around
  • It gives you peace of mind by ensuring your family will have financial support even when you are not there

3. What are the benefits of term life insurance?

Term life insurance provides several benefits to the policyholder, they are as follows:

  • Term insurance plans provide a substantial life insurance cover at affordable premiums
  • Premium paid towards term insurance provide tax benefits under section 80C up to Rs. 1.5 lacs.
  • The sum assured your family receives is also tax free.
  • It gives you peace of mind by ensuring your family will have financial support even when you are not there

4. How much cover should I take in a term plan?

The thumb rule for deciding the cover of your term plan is that it should be at least 10 times your annual income. For example, a person earning ₹5 lakh annually must have a term policy of about ₹50 lakh for adequate support to his family after his death. Any term plan providing up to 10 times your income or more, can be considered positively.
You can also find adequate cover amount by using Human Life Value Calculator.

5. Is term insurance tax free?

You can enjoy tax benefit of up to ₹1.5 lakh from your taxable income for paying the premium of your term insurance plans, thereby reducing your tax liability.
The proceeds received from a term insurance plan after the demise of policy holder is also tax exempt under section 10(10D).

6. Can NRI take term insurance in India?

If you are a Non-Resident Indian looking to buy a term insurance plan in India, you are very much eligible. When you apply for a term plan while visiting India, once the underwriting is completed for your policy, it will be considered as any other policy bought by an Indian.
You can apply for a term plan from your home country, by writing or contacting the life insurance company in India. Such policies are verified by a local notary (equivalent to an Indian diplomat or an Indian Embassy official).

7. Why should I buy term life insurance?

You should buy term life insurance as it provides financial support to your family in your absence.
Term insurance is especially necessary if you are the sole breadwinner of the family. It gives you peace of mind by ensuring your family will have financial support even when you are not there. Premium paid towards term insurance provides you tax benefits under section 80C up to Rs 1.5 lacs.

8. How to buy term plan?

You can buy a term plan online or offline.
To Buy Online,

  1. Visit the company’s website
  2. Enter your basic details to get term insurance quotes
  3. Select the sum assured and policy term that best suit your needs
  4. Make online payment
  5. Fill the proposal form online which will require you to provide your personal details, occupation details, medical history, lifestyle related details.

To Buy Offline: You can visit the nearest branch office and speak to the executives. You can also call the company’s toll-free number for any assistance while purchasing your term insurance policy.

9. Can we buy term insurance from 2 companies?

Yes, you can always buy term insurance from two separate companies. Both the insurers from which you've purchased term insurance plans are liable to pay claim to the nominee in case of the policyholder’s demise during the policy period. It’s prudent to buy more than one term life insurance plans for enhanced coverage.

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Exide Life Insurance Company Limited.
IRDAI Registration Number: 114, CIN:U66010KA2000PLC028273
Registered Office: 3rd Floor, JP Techno Park, No. 3/1, Millers Road, Bangalore- 560 001, India.
2017 Exide Life Insurance Company Limited. All rights reserved.

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