Life is unpredictable, but your family’s financial security shouldn’t be. Term insurance provides high coverage at affordable premiums, ensuring your family’s financial stability even in your absence.
At Hum Fauji Initiatives, we specialize in guiding individuals towards the right term insurance policies based on their income, lifestyle, future financial goals, and liabilities. Whether you’re a salaried professional or self-employed, we help you secure the best protection plan tailored to your needs.
What is Term Insurance?
Term insurance is a pure risk cover policy that provides financial protection. Unlike traditional life insurance plans in term insurance the protection is provided to the nominee in the event of the policyholder’s death during the policy tenure. The core benefit of term insurance is that it provides a large sum assured at a very low premium compared to other life insurance products. For instance, a 30-year-old non-smoker can get ₹1 crore coverage for as low as ₹15,000 per year.
Why Do You Need Term Insurance?
Many people underestimate the importance of term insurance, believing their savings and investments will suffice. However, life’s uncertainties make financial preparedness a necessity. Here’s why term insurance is a must-have:
Term insurance offers extensive coverage at a fraction of the cost of traditional life insurance plans. Instead of paying lakhs for an investment linked policy, you can secure a ₹1 crore sum assured for just ₹8,000 - ₹20,000 per year, depending on your age and health.
If you are the primary earner, who will take care of your family’s expenses if something happens to you? Term insurance ensures your loved ones don’t suffer financially. The payout can help cover:
- Monthly household expenses
- Loan repayments (home, car, personal loans)
- Children’s education and higher studies
- Meical emergencies and future healthcare costs
You can choose how your nominee receives the payout:
- Lmp Sum – Immediate one-time payment
- Monthly Income – Ensures financial stability over time
- Combination – A mix of both, covering both short-term and long-term needs
You can customize your term plan by adding riders:
- Accidental Death Benefit Rider – Higher payout if death occurs due to an accident.
- Critical Illness Rider – Provides a lump sum if diagnosed with life-threatening illnesses.
- Disability Rider – Ensures income support in case of permanent disability.
- Waiver of Premium Rider – Future premiums are waived if the policyholder becomes critically ill or disabled.
- Premiums Paid – Deductible up to ₹1.5 lakh under Section 80C.
- Death Benefit Payout – Fully tax-free under Section 10(10D).
Who Should Buy Term Insurance?
Term insurance is a must-have for anyone with financial dependents, including:
Salaried Professionals
Secure your family’s lifestyle and future needs.
Self-Employed Individuals
Ensure financial security despite income fluctuations.
Parents
Protect your children’s future education and expenses.
Young Adults
Lock in lower premium rates by starting early.
Homeowners with Loans
Prevent your family from dealing with unpaid loans.
How to Choose the Right Term Insurance Plan?
Determine Your Ideal Coverage Amount
Your sum assured should ideally be 10-15 times your annual income. Consider the following:
- Existing Debts – Any outstanding home, car, or personal loans.
- Future Family Expenses – Education, marriage, medical needs.
- Current Lifestyle & Inflation – Ensure coverage is sufficient in the long term.
Select the Right Policy Tenure
Your policy term should cover your most financially vulnerable years, typically until retirement (age 60-65).
Compare Premiums & Benefits
Choose a policy that offers high coverage at reasonable premiums.
Check the Claim Settlement Ratio (CSR)
Pick an insurer with a high CSR (above 95%) to ensure smooth claim processing.
Why Choose Hum Fauji Initiatives?
Expert Guidance: We help you choose the best term plan based on your income, liabilities, and future financial goals.
Personalized Recommendations: Our experts assess your needs to provide the most suitable coverage.
Seamless Process: We assist with documentation, claims, and policy selection, ensuring a hassle-free experience.
Dedicated Support: Get professional assistance throughout your policy tenure.
Common Myths About Term Insurance
🚫 “I don’t need term insurance because I am young.”
✔ Truth: Buying early reduces your premium costs significantly.
🚫 “Term insurance is a waste of money.”
✔ Truth: It provides essential financial protection when your family needs it most.
🚫 “My employer’s insurance is enough.”
✔ Truth: Employer insurance is not portable and usually has insufficient coverage.
🚫 “I can’t buy term insurance if I have pre-existing health conditions.”
✔ Truth: Many insurers offer term insurance even for individuals with medical conditions, but with slightly higher premiums.
Frequently Asked Questions (FAQs)
Term insurance is a pure protection plan, whereas traditional life insurance policies (endowment, ULIPs) include an investment component.
Your sum assured should be at least 10-15 times your annual income. If you earn ₹10 lakh per year, you should opt for a ₹1.5 crore term plan.
In a pure term plan, there is no payout if you outlive the policy term.
Yes, some insurers provide term insurance to retirees based on their pension and investments. Bajaj offers such policies.
- Premiums Paid: Tax deduction up to ₹1.5 lakh under Section 80C.
- Death Benefit: Completely tax-free under Section 10(10D).
Contact us today to discover how term insurance can secure your future!
If you’re an existing investor with Hum Fauji Initiatives, please reach out to your Relationship Manager.
If you’re new to us, feel free to call 99990 53522 or email business@humfauji.in—we’re here to assist you.
