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below links (गौरव सर के करट अफेयस, े िटक जीके और बिकंग अवेयरनेस ( े िटक) कोसज खरीदने के िलए, नीचे
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1. Gaurav Sir's Current Affairs
2. Gaurav Sir's Static GK
3. Gaurav Sir’s Banking Awareness (Static)

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 To Buy Gaurav Sir's Current Affairs click on the below link -
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What is Term Insurance? by Dr. Gaurav Garg

What is Term Insurance?

● Term insurance is the purest and simplest type of life insurance that provides financial protection to policyholders
for a specific time period.
● In case of the policyholder’s death during the policy term, the life cover amount is paid by the insurer to the
nominee/beneficiary.
● With a term insurance plan, you can receive a large amount of life cover (sum assured) at a comparatively low
premium rate.
● In Term insurance there is only death benefit, no maturity benefit (Pure insurance)
● The term insurance premium rate can differ depending on your age, gender, lifestyle habits, coverage tenure, etc.
● Minimum age to apply – 18 years
● Maximum age – depends from insurer to insurer
● The minimum eligibility for entry age is 18 years.
● Purchasing a term insurance plan at an early age helps you get large coverage at affordable premiums.

Tax Benefits (Term Insurance Tax Benefits)

● Tax benefits under Section 80C
○ The premiums you pay towards your term insurance plan can help you save money in the present as a
tax^ benefit. You can get deductions of up to ₹ 1.5 lakh under Section 80C
● Tax Benefit under Section 10 (10D)
○ When there is an unfortunate event, the family receives the policyholder’s death benefit or sum assured,
which ensures that the family gets the necessary financial protection it requires, without losing out on
taxes.
● Tax benefit under Section 80D
○ A deduction of up to ₹ 25000/- is also available under Section 80D on premiums paid for term plans with
a critical illness cover option. For senior citizens a deduction of up to ₹ 50000/- is available.

Why do we need Term Insurance?

● It gives financial protection to the family members. It gives a financial protection net for the dependents of the
life assured in case of his/her unfortunate demise.
● Protecting your assets - If you have taken a home loan, personal loan, education loan, or a loan for a vehicle, then
the repayment of these loans can financially burden your loved ones in your absence. The benefits from your plan
pay off your debts, and loans and make sure that you don’t face any financial burden.
● Covers risks associated with lifestyle - The chances of developing a lifestyle ailment increase with the increase in
age. Some of the term plans offer critical illness protection that secures your loved ones in case of an unfortunate
time. Critical illness cover provides financial security against different life-threatening diseases like heart attack
and cancer.

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Some points to consider before buying a term insurance plan:
● Insurance life cover: Assess the amount that you want to be covered, on the basis of your age, needs income,
loan liabilities, and lifestyle habits.
● Claim Settlement Ratio: The Claim settlement ratio of term insurance companies 2023 indicates the total claims
settled by an insurance company annually. The higher the CSR, the more reliable the company is.
● Solvency Ratio: Solvency ratio indicates the financial capability of an insurance company to settle death claims.
Always opt for a company whose solvency ratio is at least 1.5.
● Critical illness benefit: You should buy a term insurance policy with a critical illness cover. This will help you
cover the high expenses of medical treatments in case of diagnosis of any critical illness.
● Add-ons/Rider benefits: Select a term insurance plan that offers you a number of benefits such as accidental
death benefit, income benefit, and waiver of premium.

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Human Life Value (HLV)
● (HLV) or Ideal Life Cover is a number that tells the present value of future income expenses, liabilities and
investments. The HLV number is taken usually to understand how much money would be required to secure the
lives of your dependents with term insurance, in case you are no longer around.
● Dr Solomon S. Huebner originated the concept of Human Life Value.

3 © Copyright 2023 Study IQ

To Download Current Affairs PDFs join this Telegram Group of Dr. Gaurav Garg - https://t.me/StudyIQPremiumUsers
 To Buy Gaurav Sir's Current Affairs click on the below link -
https://studyiq.com/course-detail/gaurav-sir-current-affairs

For any Assistance Please Feel Free to Contact at - 95544 43351

To know more, download Study IQ APP

https://play.google.com/store/apps/details?id=com.studyiq.android

To Download Current Affairs PDFs join this Telegram Group of Dr. Gaurav Garg - https://t.me/StudyIQPremiumUsers
To Buy Gaurav Sir's Current Affairs, Static GK & Banking Awareness (Static) Courses, click on the
below links (गौरव सर के करट अफेयस, े िटक जीके और बिकंग अवेयरनेस ( े िटक) कोसज खरीदने के िलए, नीचे
िदए गए िलंक पर क कर) -
1. Gaurav Sir's Current Affairs
2. Gaurav Sir's Static GK
3. Gaurav Sir’s Banking Awareness (Static)

For any Assistance Please Feel Free to Contact at - 95544 43351

To know more, download Study IQ APP

https://play.google.com/store/apps/details?id=com.studyiq.android

To Download Current Affairs PDFs join this Telegram Group of Dr. Gaurav Garg - https://t.me/StudyIQPremiumUsers