Best 5 Year Term Life Insurance Plans

In case anything happens to the policyholder within the policy term, the nominee of the policyholder will be entitled to a death benefit. The death benefit will be the chosen sum assured at policy inception. The premium paid towards a term life insurance policy is eligible for tax deductions as per Section 80C of the Income Tax Act, 1961. You can enhance the overall protection offered by your existing term plan by opting for additional riders. This is perhaps the best feature of a term plan.

Understanding the 5-Year Term Plan

A five-year term life insurance plan comes with low and affordable premium rates, depending on the age of the policyholder. You also have the flexibility to select payment modes and premium amounts. A 5-year term life insurance plan can help you plan your future expenses. 

List of 5-Year Term Life Insurance Policies

Here's a list of a few 5-year term insurance plans that are best of all plans: 

1. Aegon Life iTerm Insurance Plan

This is a non-linked non-participating term insurance plan which provides financial security to your family in your absence. Under this plan, you can buy additional insurance coverage in case the need arises in the future. Option of life coverage till the age of 100 years.

• Option to pay premiums for a limited period (till age 60 years). Flexibility to choose the death benefit payout - lump-sum payment or as fixed monthly income for 100 months OR as a combination of the above.
• Option to increase your life coverage. Rider Options - Accidental death, Critical illness, women-specific Critical illness & Disability. Lower premium rates for Females and Non-smokers.

The premiums paid and benefits received are eligible for tax benefits under Section 80C and 10(10D) of the Income Tax Act, 1961.

2. SBI Life eShield

This is an online pure term non-linked non-participating insurance plan that comes with two types of payout benefits. Lower premiums for non-smokers. Inbuilt Accelerated Terminal Illness Benefit. Rider Options - SBI Life - Accidental Death Benefit Rider and SBI Life - Accidental Total & Permanent Disability Benefit Rider.

The premiums paid and benefits received are eligible for tax benefits under Section 80C and 10(10D) of the Income Tax Act, 1961. Death Benefit is as per the selected benefit structure. It takes 80 years for Level Cover Benefit and 75 years for Increasing Cover Benefit. Premium payment mode: Yearly, Half-yearly, Quarterly & Monthly. 

3. LIC Amulya Jeevan II

This is a term insurance cover offered under the LIC term insurance plan. The plan safeguards the financial future of the family in case of an unfortunate event. As a pure protection plan, LIC Amulya Jeevan II offers comprehensive coverage to the family of the insured at an affordable premium rate. The entry age is a minimum of 18 years and the maximum age is 60 years. The maturity age is 70 years. Policy tenure is a minimum of 5 years and a maximum of 35 years. 

Conclusion

Lack of a term insurance plan can have a disastrous impact on the lives of your spouse and children. Thus, a term insurance plan is a must-have in your investment portfolio. The plans mentioned above are an excellent option if you are looking for a 5-year term plan.

Also Read:

• Do I need Term Life Insurance?
• How Is Term Insurance A Good Choice For Investment?

Disclaimer: This article is issued in the general public interest and is meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive and should research further or consult an expert in this regard.