20 Year Term Life Insurance Policies in India

1. Extended cover Policyholders are covered for a period of 20 years, ensuring they can continue their normal lifestyle without having to worry about themselves during this period.
2. Death benefit In the event of unfortunate demise of a policyholder during the term period, his/her nominee will receive a death benefit. This death benefit depends on the premium paid and is traditionally higher than regular life insurance policies.
3. Income Tax benefit Individuals are entitled to income tax benefits under Section 80C of the Income Tax Act, helping them save tax.
4. Surrender benefit Policyholders can get surrender benefits if they choose to surrender their policies before maturity.
5. Additional riders A policyholder can customise his/her policy by adding additional riders, enhancing overall protection.
6. Low premiums The premium for 20 year policies is generally lower compared to other short term periods. These premiums can be paid without burdening a policyholder.
7. Premium paying modes Most providers offer flexible premium payment terms to policyholders.
8. Loans Certain insurance providers offer loans against term life insurance policies.

Note These features and benefits might vary depending on the service provider and it is recommended to check with the provider first.

Who is this plan suited for?

Individuals who wish to spend the next 20 years of their life without tension should opt for this plan. It is ideal for those who might retire during this period or those who are expecting certain changes in their lifestyle during this period. Individuals with marriage/educational commitments of their children can opt for this plan, given the great benefits one is entitled to. Individuals who cannot afford premiums for a permanent life insurance policy could opt for a 20 year term life insurance plan. It is generally not suited to youngsters who have no foreseeable problem in the future or those who have just embarked on a new journey of financial independence.

How this plan works

The working of this plan is simple and straightforward. Individuals who purchase this scheme are entitled to protection during the tenure of this policy, i.e. 20 years. In the event of a policyholder passing away during this period, his/her nominee will receive a death benefit. The policy is active as long as premiums are paid. In the event of an individual passing away after the policy matures, no benefit will be paid. There will be no maturity benefit either, if a policyholder survives for the entire period of this policy.

Best 20 years’ term plans in India

Some of the most popular term life insurance plans for 20 years are mentioned below.

• Aegon Life iTerm Plan - This plan offers cover ranging from Rs 10 lakh upwards and is ideal for those looking to invest smaller amounts in premiums
• SBI Life eShield - Individuals can choose a cover ranging from Rs 20 lakh onwards with decent premium options
• HDFC Life Click 2 Protect - This scheme offers cover ranging from Rs 10 lakh to Rs 10 crore
• LIC e-Term Plan - The minimum cover under this plan is Rs 50 lakh, with a higher premium compared to others
• Kotak Life Preferred e-Term Plan - Individuals can opt for a cover ranging from Rs 25 lakh onwards under this plan

GST of 18% is applicable on life insurance effective from the 1st of July, 2017