5 Year Term Insurance Plan in India

Given the volatility of today's environment, insurance coverage is essential. A lack of insurance coverage could significantly influence the lives of those around us, and a 5-year term life insurance policy can be a lifesaver in the event of unforeseen events. In today's fast-paced environment, a 5-year policy provides short-term benefits.

How Does A 5-Year Term Insurance Plan Work?

A 5-year term life insurance policy has a straightforward functioning mechanism that is easy to grasp. A policyholder is required to pay premiums for the period of the policy, and he/she is entitled to protection during that time. If he/she dies within this period, his/her nominee will get a death benefit that is based on the premium. This plan has no maturity benefit, and an individual is not entitled to any monetary return when the policy matures. Furthermore, if a person dies after the policy has expired or lapsed, no payout will be paid.

Must Read: Can I Buy A Term Insurance With Income Proof?

Who Should Buy A 5-Year Term Insurance Plan?

A 5-year term plan is best for people who have immediate financial difficulties that could worsen after they pass away. It is appropriate for individuals who believe their death will put their family in a difficult situation in the near future. Individuals approaching retirement age can get this policy if they are healthy and fit enough to be protected. It is also appropriate for people who are responsible for their family and have schooling or marriage duties. Individuals with modest financial resources can benefit from this coverage because the premiums are often lower than traditional life insurance policies.

Best 5 Year Term Insurance Plan in India

Below are some of the top 5-year term plans.

1. Aegon Life iTerm Insurance Plan

Being a non-linked, non-participating term insurance plan, it protects your family financially in the event of your death. You can get additional insurance coverage under this plan if the need arises in the future. Life insurance up to the age of 100 years is an option. Premiums can be paid for a set amount of time (till age 60 years). Additional rider benefits are available, such as accidental death coverage, critical illness coverage, women-specific critical disease, and disability coverage. Females and non-smokers pay lower premiums.

2. SBI Life eShield

This is a non-linked, non-participating online pure term insurance plan with two types of payout advantages. Non-smokers pay lower premiums. The benefit for Accelerated Terminal Illness is built-in. SBI Life - Accidental Death Benefit Rider and SBI Life - Accidental Total and Permanent Disability Benefit Rider are two options for riders.

3. LIC Amulya Jeevan I Plan

LIC Amulya Jeevan is a high-sum-assured term insurance policy that is intended for protection. If the life insured dies, the nominee will get the entire sum assured, but no money will be paid out at maturity. You can use this product if you need a large amount of sum assured.

Take Away

The lack of a term insurance plan can have a devastating effect on your spouse and children's lives. Hence, a term insurance policy should be included in your financial portfolio. If you're searching for a 5-year term plan, the three plans mentioned above are excellent choices.

Also Read: Why is a Term Insurance Plan Right for Home Insurance Buyers?

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