A term plan is a pure death benefit plan. A term plan is a perfect insurance policy for anyone who is looking to provide a financial security for the family in the absence of the bread-winner.
A term plan provides financial stability to the family of the insured. The nominee/ beneficiary receives the sum assured, if the insured passes away during the tenure of the term plan.
The policyholder can decide the payout of the sum assured at the time of purchase.
The different payouts offered under Term Insurance:
The lump sum benefit is one of the payout options you can opt while buying a term insurance plan. When you opt for a lump sum benefit payout option, the nominee/beneficiary receives full payment of the sum assured at once.
For instance, consider a case: A 30 year old male, non-smoker, opts to go for a 30 years of tenure with a term plan of sum assured as Rs. 1 crore. The annual premium for a basic plan for him would be anywhere in the range of Rs. 7,000 to 17,000 depending on the plan and the insurance company. Whichever insurance company he opts, the sum assured of Rs. 1 crore will paid out at once to his nominee/beneficiary in case if he passes away during the policy period of 30 years.
The lump sum payout helps the family of the insured to get stabilize financially immediately in the absence of a bread-winner without worrying about expenses and other basic needs.
It provides an immediate cash flow at the disposal to the policyholder's family.
Benefits for Lump sum benefit:
| Company | Term Plans with lump sum benefit |
|---|---|
| HDFC Life | HDFC Life Click2Protect Plus |
| Aegon Life | Aegon Life iTerm |
| Edelwesiss Tokio | Edelwesiss Tokio TotalSecure+
Edelweiss Tokio - MyLife+ |
| Max Life Insurance | Max Life Online Term Plan |
| Future Generali | Future Generali - Flexi Term Plan |
| Company | Plans |
|---|---|
| Life Insurance Corporation of India | LIC's e-Term |
| Birla Sun Life Insurance Company Limited | BSLI Protect@Ease |
| TATA AIA | Tata AIA iRaksha Supreme |
| PNB Metlife | PNB Metlife - Mera Term Plan |
| Bajaj Allianz Life Insurance Company Limited | Bajaj Allianz iSecure |
| Kotak Life Insurance | Kotak Preferred e Term Plan |
| Canara HSBC Life Insurance | Canara HSBC Life - eSmart Term Plan |
| SBI Life Insurance Company | SBI Life – eShield |
| Reliance Life Insurance | Reliance Online Term |
| Aviva Life Insurance | Aviva I Life |
| IDBI Federal Life Insurance Company Limited | IDBI Federal – iSurance |
| IndiaFirst Life Insurance Company Limited | IndiaFirst Life - Anytime Plan |
