Term insurance plan

• Maximum life cover at low premium rates
• Pays out the sum insured in the event of death of the insured before the maturity date
• Covers most of the liabilities of the insured in the event of his/her death
• Maximum age for maturity: 70 years
• Under section 80 C of the Income Tax Act, a rebate of 20 per cent on the annual premium payable on his/her life and life of his/her children or adult children. This rebate can be availed up to a maximum of Rs 12,000 on payment of yearly premium of Rs 60,000. That means by paying Rs 60,000 a year, one can buy anything upwards of Rs 10 lakh in sum assured.
• Income tax exemption on Maturity/Death claims proceeds under Section 10(10D).
• Under section 80 D, additional premium paid for Critical Illness benefit or Accelerated Sum Assured benefit qualify for deduction up to Rs.15,000 (Rs. 20,000 for senior citizens).