Important Aspects of a 5 Year Term Insurance Plan

Updated On Aug 28, 2021

Salient Features of a 5 Year Term Insurance Plan
At the End

A term insurance plan is a type of life insurance policy that is both simple and budget friendly. It provides financial safety to the family of the policyholder in the event of his unforeseen death. Taking life’s uncertainty into consideration, an individual must definitely consider purchasing a term insurance plan to safeguard the future of his loved ones as it provides death benefits.

A term insurance plan for 5 years can serve as a great help during unforeseen incidents. It provides short term benefits and is appropriate for the fast moving times that we are presently living in.

Highlighted below are a few reasons why it is important to purchase a term insurance plan:

It would help you in ensuring financial stability of your family members.
It would aid your family financially in paying off the necessary expenses.
It can help your family in paying off your current debts.
The pay out would help your family members in meeting any emergency expenses, in case any.
A term insurance plan offers the policyholder with high coverage at a lower premium rate.

Salient Features of a 5 Year Term Insurance Plan

The features mentioned below are what is majorly offered under a 5 year term insurance plan:

Surrender Benefit
A policyholder at any point of time who wants to withdraw the plan prior to the maturity date can avail surrender benefits.
Death Benefit
In the event of an untimely demise of the policyholder during the plan tenure, the nominee is allowed to get a death benefit. The death benefit offered here is greater as compared to other traditional plans.

Must read: Why Is It Important to Renew a Term Insurance Plan?

Tax Benefits
An individual is eligible to avail tax benefits as per section 80C of the Income Tax Act.
Online Plan Purchasing
Purchasing a term insurance plan online is the most suitable method of buying insurance. You can purchase an insurance plan either through the official website of the insurance company or through an insurance aggregators website such as InsuranceDekho.
Low Premium
Term insurance plans for 5 years tenure can be availed at low premium costs. One of the major factors that determine term insurance premium is age. In case you are healthy and young, there are better chances of you securing a plan with low premium.
Riders
A policyholder is eligible to choose additional riders alongside the standard insurance plan. It would help in enhancing the coverage benefits without drilling a hole into their pockets. These insurance riders can be availed by paying a little extra premium cost.
Future Planning
A financially wise person is someone who plans their finances while keeping the most significant life goals in mind. By considering adding a 5 year term insurance plan to your financial portfolio, you can easily take a step forward.

At the End

A term insurance plan for 5 years is one of the best plans available in the market that can be purchased by an individual in order to meet their short term requirements. There are various insurance providers in India that offer short term plans like these. However, it is recommended to go for a long term insurance plan so that you are able to enjoy the benefits of higher coverage for a significant tenure.