What is 25 Year Term Insurance Policy?

25-Year Term Life Insurance Plan - Prioritising their family’s financial security is paramount for every individual. Suppose you are wondering how to ensure financial safety for your family. In that case, one way to do so is to invest in various financial products available in the market that provide a safety net for them in your absence. One such product is term insurance. You can purchase a term insurance plan for a specific number of years. A 25-year plan can be a suitable option considering the uncertainty of life. Keep reading this article to understand why buying a 25-year term insurance plan ensures optimal coverage in times of emergency for your family.

25-Year Term Life Insurance Plan - Prioritising their family’s financial security is...

Key Benefits of a 25 Year Term Insurance Policy

Many Indian citizens have limited awareness about term insurance and its benefits; hence, they remain uninsured or underinsured. So, let’s look at the key advantages of securing a 25 year term insurance policy. Knowing this will help you make informed decisions if you are considering purchasing a term plan to secure the financial well-being of your loved ones.

Financial Protection

One of the prime benefits of buying term insurance is that your family or dependents will get financial protection in your absence. Every individual works hard to keep their family happy and safe from any situation, and investing in a 25 year term insurance policy is essential to safeguard them against unforeseen circumstances. The coverage ensures that even in the event of an unfortunate situation, your family's financial well-being remains protected.

Affordable and Predictable Premiums

Term life insurance policies generally offer fixed premiums. With a 25 year term policy, you lock in a consistent premium amount, making budgeting easier and providing financial stability.

Considering term insurance premiums, you must understand that they are relatively affordable compared to permanent policies. However, the premium amount differs from one policyholder to another due to factors like age, profession, policy tenure, etc. You can use an online term insurance calculator to estimate your premiums beforehand.

Long Life Cover

A 25 year term provides long-term coverage, benefiting individuals who want to protect their dependents or financial obligations. This can be particularly valuable if you have young children or a mortgage that extends for several decades.

For example, you bought a new house through a home loan. Unfortunately, if you pass away due to an unforeseen accident before the entire repayment, the burden of repaying the loan will fall on your dependents or family members. Buying a 25 year term insurance plan protects your family from such financial burden and stress.

Flexible-Premium Payment

Almost every insurer offers their policyholders term insurance plans with a flexible premium paying option. At your convenience, you can pay the premium on a regular or single premium monthly, yearly, quarterly, and half-yearly basis.

Rider Benefits

Riders are optional add-ons on your policy for additional protection. Some of the most common riders include Critical Illness, Accidental Death, Disability Income, Premium Waiver, and many others. This rider lets you make your term insurance even more personalised to meet your needs and give you additional security.

Tax Benefits

One essential perk of having a 25 term insurance policy is tax advantages. Indian taxpayers can invest in varied financial instruments, including life insurance, and get attractive tax exemptions under Section 80C and Section 80D.

Under Section 80C, you can get tax relaxations up to ₹1.5 Lakhs on the premiums paid towards your insurance plan. On the other hand, under Section 80D, a term insurance policyholder with riders such as critical illness can get tax relaxation of up to ₹25,000.

Who Should Buy a 25-Year Term Insurance Plan?

Buying term insurance is a great investment for every individual. Here is a list of individuals who should consider purchasing a 25-year term insurance plan in India to secure their family’s finances in case of any mishap:

Age Range	Reasons for Interest
20s	Starting careers, potential dependents, and student loans.
30-40	Young families, mortgage protection, financial security for dependents.
41-50	Covering financial obligations, ensuring long-term protection until retirement.

Young Parents As a young parent, you will find that child care is expensive, and it becomes difficult to meet such expenses due to rising costs. Moreover, saving up for your child’s higher education is challenging. To address these concerns, consider investing in a 25 year term insurance plan. This can provide financial protection for your child in case of an unfortunate event such as your absence.

Single Mothers As a single mother, your child depends entirely on you. Hence, it becomes crucial to plan your child's future financially in case of your absence. A 25 year term insurance plan can provide the peace of mind that your child’s future is financially secure in the event of your sudden demise.

Homeowners with Mortgages If you have a home loan or other similar debt, consider buying a 25 year term insurance plan. It will help your family pay off the loan amount in case of your sudden demise. They can use the sum insured to repay the mortgage and alleviate the financial burden, making them debt-free.

Business Owners: Securing your life and business is vital as a business owner. A term insurance plan can help your family cover business loans or liabilities and eliminate financial debt in case of your sudden demise.

Breadwinners If you are the breadwinner of your family, consider buying a 25 year term insurance plan to secure your family’s financial future. This plan will ensure your family will not face financial difficulties in your absence.

How to Select and Manage a 25-Year Term Insurance Policy?

A 25-year term insurance policy works in the simplest manner, which will ensure a smooth and hassle-free life for your loved ones. First, you must conduct in-depth research and compare various insurance providers to choose the best-suited one. There are various insurance companies in India offering term policies at competitive prices. After selecting the best plan, you must choose a policy term or tenure while buying it.

Choosing 25 year term insurance is best for individuals looking for long-term coverage for their family. To claim coverage, one must submit some of the following required documents and raise the claim offline or online.

Duly filed claim form
Claimant’s statement
Original certificate of death (if availing death benefits)
Copies of the beneficiary's identity proof
Nominee’s bank details, etc.

Note: Every insurer requires a different set of documents per their policy.

How Do You Determine the Right Coverage Amount You Need?

The term insurance coverage amount is the total sum assured one nominee or beneficiary can claim against the policyholder's death. Since this amount is pre-determined, you must choose it wisely.

Monthly Expenses: You must self-assess your monthly income and expenditures like rent costs, groceries, education, medical costs, etc.
Age: Note that the earlier you buy a term insurance plan, the lower the premium amount you have to pay.
Financial Liabilities: Do not neglect to consider your debts (if any), such as various types of loans and credit card bills.
Dependents: In addition to your age, you must also consider the number of dependents in your family and their life goals. Many individuals dream of funding their child’s marriage or higher studies; in such cases, one must choose the sum insured according to that.
Income: Your current income plays a huge role in choosing the right coverage amount. A thump rule states that one must choose a coverage amount of 10 to 15 times one's yearly income.
Health Conditions: If you have a pre-existing medical issue, it will affect your insurance premium and policy terms.
Retirement Plans: Those planning to take early retirement should consider availing sufficient coverage to maintain their lifestyle.

Why Should You Buy ACKO Life Flexi Term Plan?

One of the digital insurance companies in India, ACKO offers a unique product, the ACKO Life Flexi Term Plan, with unmatched flexibility. Here are a few reasons why you should consider securing this innovation plan:

Customised Sum Assured

ACKO Life Flexi Term Plan allows you to customise the sum insured according to your needs. This unique plan is designed to fit seamlessly with your ever-changing phases of life. Increase or decrease your Sum Assured as your financial responsibilities go up or down or your dependents' needs change.

Easy and Convenient Process

As ACKO is the digital-first insurance company in India, you can easily buy the ACKO Life Flexi Term Plan online via ACKO’s mobile application. Furthermore, you can file insurance claims with just a few simple steps on the ACKO app.

Cost Effective Plan

The ACKO Life Flexi Term Plan is a cost-effective life insurance plan. When you buy this plan, you can receive extensive coverage while paying lower premiums. In addition, it will help you save on income taxes, offering a win-win situation.

Customise Policy Terms

With ACKO Life Flexi Term Plan, you can customise the policy terms according to your life insurance requirements. In addition, you get the privilege of adding riders, such as accidental death, critical illness and disability benefits, to the plan to receive extra benefits in specific situations.

Add Nominees

The ACKO Life Flexi Term Plan gives you the advantage of adding, modifying or changing the nominees of your life insurance plan accordingly. With this plan, you can make necessary adjustments to your policy according to your specific requirements.

How to Buy ACKO Life Flexi Term Plan Online?

If you plan to buy an ACKO Flexi Term Plan online, you can follow this simple guide:

Open the ACKO mobile application
Log in to your account using the credentials or create an account if you do not have one.
Select the plan according to your life insurance requirements once you log in.
Answer a few questions to determine your life insurance eligibility and the premium amount.
Once eligible for the preferred plan, you can pay the premium online.
After paying the premium, you can review the policy once received through email or download it from the application.

Please note that it is a generic process and may differ depending on your preferred plan and other details.

Frequently Asked Questions

How to buy a 25-year term insurance plan online?

First and foremost, visit the insurance provider's website and choose the plan you want to buy. Then, fill out the application form and provide the necessary documents. Answer a few questions based on which insurer will set the premium. Lastly, complete the first payment online to buy a 25-year term insurance plan.

What is covered in term life insurance?

Term life insurance provides financial protection for a specific period known as the term. It provides death benefits to the policyholder’s beneficiaries.

Can I buy multiple-term insurance policies?

Yes, you can buy many term insurance policies in India based on your needs.

What is the basic difference between term and whole life insurance plans?

Term insurance provides coverage for a specific period with no cash value. On the other hand, a whole life insurance plan offers lifelong coverage, including a cash value component that grows over time.

How can I lower my 25-year term insurance premium?

Start by maintaining a healthy lifestyle, avoiding smoking, and conducting comparisons to find competitive rates to lower your 25-year term insurance premium. In addition, it is always wise to choose annual premium payments instead of monthly.