5 Year Term Life Insurance
In 5 Year Term Life Insurance Policy, the insured person gets an insurance cover of 5 years. It is a short term term insurance policy. The rate of premium offered in 5 Year Term Life Insurance Policy is higher as insurance companies demand higher premium payment for shorter term policies.
In 5 Year Term Life Insurance Policy, after the end of the policy term of 5 years with the insured person, he can choose to convert or renew it. This plan is good for someone who wants to avail the benefits of a term insurance plan for a limited period.
While buying 5 Year Term Life Insurance Policy, the customer should take care of some things. We will discuss about this further in this article, in which you will know what are the features of 5 Year Term Life Insurance Plan? What is the eligibility for 5 Year Term Life Insurance Policy? What are the Best 5 Year term life insurance plans? How does 5 Year term life insurance plan work? And who should buy this Best 5 Year term life insurance plan. Let us discuss about this in detail.
Features And Benefits Of 5 Year Term Plan
Here we will discuss some of the salient features of 5 Year term Life Insurance Plan. What you need to know
- Death Benefit:
In 5 Year term Life Insurance Plan, you are provided with the death benefit just like other term insurance plans. In this, if the policyholder dies, the death benefit is provided to the person nominated by the policyholder. It can be used by the nominee as per his/her wish to meet his/her financial liability.
- Income Tax Benefits:
Like other term insurance plans, you are also provided tax benefits in 5 Year term Life Insurance Plan. You can apply for tax benefits under section 80C of the Income Tax Act, 1961. Through this you can reduce your tax burden.
- Surrender Benefits:
Surrender benefit is also provided to you in 5 Year term Life Insurance Plan . This benefit is provided to the policyholder if he wants to terminate the policy prematurely. The premium paid by him is returned to him.
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You can add additional riders to this plan through which you can further enhance your term insurance policy cover. For this, you have to pay a little extra and you can add additional riders as per your requirement which helps in meeting your future requirements.
- Low Premium:
If the age of the customer buying the 5 Year term Life Insurance Plan is less, then he is offered a lower premium. Therefore, he can reduce the cost of premium by taking this plan at a young age.
- Increasing Cover Benefit:
Under 5 Year term Life Insurance Plan, the cover of the policy increases at the rate of 10% at the end of 5 years.
Eligibility For 5 Years Term Insurance
Now we will know about the eligibility conditions for 5 Year Term Life Insurance.
- The minimum age of the customer should be 18 years to buy 5 Year Term Life Insurance policy.
- The maximum entry age for a 5 Year Term Life Insurance policy should be 65 years.
Best 5 Year Term Life Insurance Plan
- LIC Precious Life I (LIC Amulya Jeevan)
- SBI Life e – Shield (SB SBI Life E-Shield)
- Aegon Life iTerm Plan | Aegon Life iTerm Plan
How Does A 5 Year Term Life Insurance Plan Work ?
5 Year Term Life Insurance Plan works like any other term insurance plan. In this the policyholder has to pay a fixed premium till the policy term and if the policyholder dies during this policy term then the death benefit is provided to the nominee by the insured.
No maturity benefit is provided in this term insurance policy. But now-a-days many insurance companies are offering such policies in which maturity benefit is also provided to you.
Who Should Buy 5 Years Term Insurance ?
5 Year Term Life Insurance Plan is suitable for people who want to avail term insurance policy for a limited period. Through this insurance policy, the customer can take a term insurance plan for a limited period keeping in mind his future risk and in this limited period he can easily pay these premiums through his source of income. This type of term insurance policy is very beneficial for a person doing risky work for a short period of time.
But if you want to avail term insurance benefits for a longer period, then it is advised that you choose a long term term insurance plan, because a long term term insurance plan has lower premium rates which The financial burden falls on you less. Therefore, you should choose a term insurance policy keeping in mind your future needs.