Term Insurance Plan
Term insurance is a crucial component of financial planning that offers a safety net to your loved ones in case of an unforeseen event. It’s a life insurance policy that provides coverage for a specified period, known as the policy term. In the event of the policyholder’s demise during the policy term, the insurance company pays out a death benefit to the beneficiaries, ensuring that their financial well-being remains intact.
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- Why do you Need a Term Insurance Policy?
- Momentum Finserv Term Insurance Products
- How much Term Insurance Coverage do I Need?
- How To Choose The Suitable Term Insurance Plan?
- What Factors Affect Your Term Insurance Premium and Costs?
- Who Should Buy a Term Insurance Policy?
- When Should You Buy Term Insurance?
Why do you Need a Term Insurance Policy?
A term insurance policy is not just a financial product; it’s a protective shield that ensures your family’s financial security in the event of your unfortunate absence, providing them with much-needed security. Here’s why it’s an essential investment:
It protects your loved ones
In the unfortunate event of your passing, the policy's death benefit ensures that your family is financially secure, helping them maintain their quality of life
It is easy on the wallet
Term insurance offers high coverage at a relatively low premium rate, making it an affordable option for comprehensive protection.
It protects your family’s assets
The death benefit can cover outstanding loans, mortgages, and other financial obligations, preventing your family from bearing the burden.
It comes with add-on riders
You can enhance your policy with riders like critical illness or accidental death benefit, tailoring the coverage to your family's specific needs.
Momentum Finserv Term Insurance Products
Momentum Finserv offers a diverse range of term insurance products, each meticulously crafted to cater to your specific needs and circumstances, ensuring that you have the right coverage in place for your family’s well-being. Discover the array of term insurance products by Momentum Finserv, each designed to provide tailored protection:
How much Term Insurance Coverage do I Need?
Multiply your annual income by a factor (usually 10 to 15) to ensure your family’s income needs are met.
Calculate your family’s annual expenses and multiply by the number of years you want to cover.
Consider your future income potential, subtract expenses, and calculate the present value of potential earnings
How To Choose The Suitable Term Insurance Plan?
When selecting the most suitable term insurance plan, it’s vital to consider factors like your age, health condition, financial goals, and family’s needs. These elements play a pivotal role in ensuring you choose a plan. While, selecting the right term insurance plan involves considering several factors:
The amount of coverage
Choose coverage that caters to your family's financial needs, ensuring their comfort and security.
The policy term
Align the policy term with your financial goals and responsibilities.
The cost of coverage
While affordability is crucial, prioritize comprehensive coverage over the lowest premium.
The add-on riders available
Enhance your policy's protection by opting for riders that address specific risks.
The claim settlement ratio
Opt for insurers with a high claim settlement ratio, indicating prompt claims processing.
The solvency ratio
Check the insurer's financial stability to ensure they can meet future obligations.
What Factors Affect Your Term Insurance Premium and Costs?
Term insurance is a versatile financial tool suitable for individuals at various life stages. Whether you’re a young professional, a parent, or nearing retirement, term insurance can provide valuable protection for your loved ones. Some of the factors that influence your term insurance premium:
- Your Age: Younger individuals generally receive lower premiums as they are considered lower risk.
- Your Gender: Statistically, women tend to live longer, resulting in lower premiums.
- Your Occupation: Riskier occupations might lead to higher premiums.
- Your Lifestyle Habits: Smokers or individuals with unhealthy lifestyles might have higher premiums.
- The Coverage: Higher coverage amounts lead to higher premiums.
- The Policy Term: Longer policy terms might increase the premium.
Who Should Buy a Term Insurance Policy?
When Should You Buy Term Insurance?
When you are on a strict budget
When you want additional, cost-effective coverage
When your primary goal is financial protection
Features & Benefits Of Term Life Insurance
Term life insurance comes with a host of features and benefits, including affordable premiums, tax advantages, and the peace of mind that your family will be financially secure in your absence. It’s a reliable and efficient way to safeguard your loved ones’ future financial well-being.
- Pure Life Cover: Term insurance provides life coverage without any savings or investment component.
- Affordable Premiums: You can secure substantial coverage at a fraction of the cost of other insurance plans.
- Flexible Premium Payment Options: Choose from annual, semi-annual, quarterly, or monthly premium payment frequencies.
- Online Purchase: Many insurers offer the convenience of buying term insurance online.
- Financial Protection for your Family: Ensure that your family's financial needs are met even in your absence.
- A High Life Cover at Low Premiums: Enjoy significant coverage without straining your budget.
- Long-Term Coverage: Term insurance offers protection for an extended period, catering to long-term goals.
- Tax Benefits: Premiums paid and the death benefit received are eligible for tax benefits under Section 80C and 10(10D) respectively.
- Enhanced Benefits with Add-On Riders: Customize your policy by adding riders that offer additional coverage for specific risks.
Tax Benefits On Term Insurance Plans
Term insurance plans not only offer financial protection but also come with tax benefits. You can potentially save on taxes through deductions under:
Tax Benefits under Different Sections of the Income Tax Act, 1961
Premiums paid are eligible for deductions under Section 80C.
Tax Benefits under Section 10(10D)
The death benefit received is tax-free under Section 10(10D).
How to Buy a Term Insurance Online?
Buying term insurance online is quick and convenient. Simply visit an insurer’s website, choose a plan, calculate the coverage you need, fill in your details, and make the payment online. It’s a hassle-free way to secure your family’s financial future. Follow these steps to buy term insurance online:
- Visit the Momentum Finserv website.
- Explore available term insurance plans.
- Choose your desired policy and click on “Get a quote.”
- Provide personal details like name, email, date of birth, etc.
- Fill in additional policy-related details.
- Review and modify policy details to adjust the premium.
- Make the premium payment.
- Fill and submit the proposal form to get your policy issued.
Documents Required to buy Term Insurance
Why Choose Momentum Finserv for your Term Insurance?
High Claim Settlement Ratio
Vast Network of Branches
Comprehensive Product Suite
Prompt Claim Settlement
Frequently Asked Questions (FAQs)
Term insurance is a type of life insurance policy that provides coverage for a specific period, known as the “term.” It offers financial protection to your loved ones in case of your unfortunate demise during the term of the policy.
Term insurance provides a death benefit to your beneficiaries if you pass away during the policy term. This benefit can help your family cover expenses such as mortgage payments, education costs, and daily living expenses.
Yes, term insurance is generally more affordable compared to other types of life insurance policies. Since it provides coverage for a specific term and doesn’t accumulate cash value, the premiums are often lower.
Yes, most savings plans offer guaranteed returns, ensuring that your investments grow steadily over time, providing financial stability and security.
Secure your financial future, achieve your life goals, and optimize your tax savings with Momentum Finserv’s Life Savings Plan. Contact us today to explore our comprehensive range of insurance solutions, empowering you to plan your financial future with confidence. Your financial well-being is our top priority.
Most term insurance policies offer the option to renew or extend the policy after the initial term. However, the premiums might increase upon renewal. Some policies also offer the option to convert to a permanent life insurance policy.
Depending on the insurer and the coverage amount, a medical exam might be required for term insurance. It helps the insurer assess your health and determine your premium rates. Some policies offer simplified underwriting, which may not require a medical exam.
Yes, many insurers offer riders that can be added to enhance your coverage. Common riders include accidental death benefit, critical illness coverage, disability coverage, and more.
If you outlive the term of the policy, the coverage will expire, and there won’t be a payout to your beneficiaries. However, some policies offer the option to renew, convert, or purchase a new policy, but the premiums might be higher due to your age.
