Term & ULIPs Insurance
Hum Hai SurePath Financial Pvt Ltd
Term Insurance
Term insurance is a pure life insurance policy that provides financial protection to the insured's family in case of their untimely demise. It offers high coverage at affordable premiums and ensures that dependents receive a lump-sum payout to manage expenses, debts, and future financial needs.
- Affordable Premiums: Lower cost compared to other life insurance plans.
- Fixed Term Coverage: Protection for a specific period (e.g., 10, 20, or 30 years).
- Lump-Sum Payout: Beneficiaries receive the sum assured upon the insured's death.
- No Maturity Benefits: If the insured survives the policy term, no payout is made.
- Customizable Riders: Add-ons like critical illness cover, accidental death benefits, and disability protection.
- Financial Security: Ensures dependents are financially stable in case of an emergency.
- Debt Protection: Helps cover outstanding loans and liabilities.
- Tax Benefits: Premiums paid are eligible for tax deductions under Section 80C of the Income Tax Act.
Features Of Term Insurance
Why Choose Term Insurance?
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Increasing term insurance is a type of term life insurance where the sum assured grows over time, helping policyholders keep up with inflation and rising financial responsibilities.
Key Features
Gradual Increase in Coverage: The sum assured increases annually by a fixed percentage or amount.
Fixed Premiums: In most cases, premiums remain constant throughout the policy term.
Inflation Protection: Helps ensure the payout remains relevant to future financial needs.
No Maturity Benefits: If the policyholder survives the term, no payout is made.
Customizable Riders: Can include accidental death, disability, or critical illness coverage.
How It Works
The policy starts with a base sum assured.
Each year, the coverage amount increases by a predefined percentage (e.g., 5% or 10%).
The increase continues until a set limit (e.g., 200% of the original sum assured).
If the insured passes away, the nominee receives the sum assured applicable at that time.
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Decreasing term insurance is a type of term life insurance where the sum assured reduces over time at a predetermined rate. It is often used to cover liabilities like loans or mortgages, ensuring that the payout aligns with the decreasing financial obligations.
-Key Features
Declining Coverage: The sum assured decreases periodically (e.g., annually or every five years).
Fixed Premiums: Premiums usually remain constant despite the reducing coverage.
Loan Protection: Often used to cover mortgages, business loans, or other debts.
Affordable Option: Lower premiums compared to level term insurance.
No Maturity Benefits: If the policyholder survives the term, no payout is made.
How It Works
The policy starts with a higher sum assured.
Over time, the coverage amount reduces based on a predefined schedule.
If the insured passes away, the nominee receives the current sum assured at that time.
Who Should Consider It?
Individuals with large loans (e.g., home or business loans).
Those looking for cost-effective life insurance.
People who want coverage aligned with financial liabilities.
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Return of Premium Term Insurance (TROP) is a variant of traditional term insurance that provides both life coverage and a refund of premiums if the policyholder survives the policy term. Unlike standard term insurance, which only offers a death benefit, TROP ensures that policyholders receive a maturity benefit.
Key Features
Premium Refund: If the insured survives the policy term, they receive back the total premiums paid (excluding taxes and rider costs).
Death Benefit: In case of the policyholder’s demise, the nominee receives the sum assured.
1Q`Fixed Premiums: Premiums remain constant throughout the policy duration.
Tax Benefits: Eligible for deductions under Sections 80C and 10(10D) of the Income Tax Act.
Customizable Riders: Can include accidental death, critical illness, or disability coverage.
How It Works
The policyholder pays premiums for a fixed term.
If they pass away during the term, the nominee receives the sum assured.
If they survive the term, the insurer refunds the total premium paid.
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Convertible term insurance is a flexible life insurance policy that allows the policyholder to convert their term plan into a permanent life insurance policy without undergoing a new medical examination. This feature is beneficial for individuals who initially opt for affordable term coverage but later want lifelong protection.
Key Features
Seamless Conversion: Switch to whole life or endowment plans without fresh underwriting.
No Medical Tests: The conversion process does not require additional health screenings.
Long-Term Security: Ensures continued coverage beyond the original term.
Fixed Premiums: Premiums may remain stable even after conversion.
Tax Benefits: Eligible for deductions under Sections 80C and 10(10D) of the Income Tax Act.
How It Works
The policyholder starts with a term insurance plan.
At any point during the policy term, they can convert it into a permanent life insurance policy.
The new policy continues with lifelong coverage, ensuring financial security.
Who Should Consider It?
Young professionals who want affordable coverage now but may need lifelong protection later.
Individuals concerned about future health risks that could affect insurability.
Those looking for flexibility in their financial planning.
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Term Insurance is a life insurance policy that provides coverage to a group of individuals under a single plan. It is commonly offered by employers to their employees, ensuring financial security for their families in case of an unfortunate event.
Key Features
Collective Coverage: Covers all members of a group under one policy.
Lower Premiums: More affordable than individual term insurance.
Death Benefit: Provides financial support to the nominee in case of the insured’s demise.
Employer-Sponsored: Often paid for by the employer, though employees may contribute in some cases.
No Medical Tests: Many plans do not require individual medical check-ups.
Types of Group Term Insurance
Employer-Sponsored Plans: Coverage provided by companies for their employees.
Association-Based Plans: Offered to members of professional or social groups.
Affinity Group Plans: Available for members of organizations like alumni associations or credit unions.
Why Choose Group Term Insurance?
Cost-Effective: Provides financial security at lower premiums.
Easy Enrollment: No complex paperwork or medical tests.
Employee Benefit: Helps retain and support employees with added financial protection.
Term & ULIPs Insurance
Hum Hai SurePath Financial Pvt Ltd
ULIPs Insurance
ULIPs (Unit Linked Insurance Plans) and Term Insurance serve different financial purposes. Here are the main types of ULIPs and Term Insurance:
- Dual Benefit: Provides life insurance coverage while allowing investments in market-linked funds.
- Flexible Investment Options: Choose between equity, debt, or balanced funds based on risk appetite.
- Fund Switching: Allows movement between funds depending on market conditions.
- Lock-in Period: Typically requires a minimum 5-year investment period before withdrawals.
- Top-Up Investments: Additional contributions can be made beyond regular premiums.
- Tax Benefits: Premiums qualify for deductions under Section 80C, and maturity proceeds may be tax-free under Section 10(10D).
- Transparency: Clear breakdown of charges, fund performance, and returns.
- Partial Withdrawals: Some plans allow withdrawals after the lock-in period.
- Mortality Charges: A portion of the premium is allocated to life insurance coverage.
- Equity ULIPs – Invest primarily in stocks, offering high returns but with higher risk.
- Debt ULIPs – Invest in bonds and fixed-income securities, providing stable returns with lower risk.
- Balanced ULIPs – A mix of equity and debt investments, balancing risk and reward.
- Single-Premium ULIPs – Require a one-time lump sum payment instead of regular premiums.
- Regular-Premium ULIPs – Allow periodic premium payments for long-term investment.
- Child ULIPs – Designed for securing a child’s future education and financial needs.
- Retirement ULIPs – Focus on wealth accumulation for post-retirement financial security.
Level term insurance is a simple and cost-effective life insurance plan where the sum assured remains constant throughout the policy term. Unlike increasing or decreasing term insurance, the coverage amount does not change over time.
Key Features
Fixed Premiums: The premium remains the same throughout the policy duration.
Stable Coverage: The sum assured does not increase or decrease.
Death Benefit: Provides financial security to beneficiaries in case of the insured’s demise.
No Maturity Benefits: If the policyholder survives the term, no payout is made.
Customizable Riders: Can include accidental death, disability, or critical illness coverage.
Why Choose Level Term Insurance?
Predictable Costs: Easier to budget with fixed premiums.
Long-Term Security: Ensures a stable financial safety net for dependents.
Affordable Protection: Lower premiums compared to other life insurance plans.