Short Term Insurance Plans
- Short Term Coverage
- Lower Premiums
- Rider Protection
Do you think life insurance is a long term commitment? Then you must haven’t heard about short term insurance plans. As the name suggests, these plans provide life coverage for a very short period of time which might range from 5 to 10 years.
Since the tenure is very short, the premiums are lower, and thus the premium payment term is short too.
Let us learn about these plans in detail.
To put it simply, short-term life insurance plans offer life cover for a short duration of term. Like the term insurance plan, it provides death benefits to the nominee when the policyholder passes away during the policy tenure.
Unlike life insurance, there is no way you can grow your money or any savings component in short-term life insurance. Whether you're on a short stay in India due to professional work or are an individual with limited financial capacity who wishes to have life security, short-term life insurance is the suitable option for you.
We've compiled the list of the top 5 short-term insurance plans in India for a person aged 25 years old, who is a non-smoker earning 5 lacs or above income annually, and looking for insurance coverage of 50 Lakhs till 5 years.
| Short-term Insurance Plan | Entry Age | Life Cover | Policy Term | Monthly or Annual premiums |
|---|---|---|---|---|
| Edelweiss Tokio Saral Jeevan Bima | 18 - 65 years | 50 Lakhs | 5 years | Rs. 465/month Rs. 5,277/year |
| Aegon Life iTerm Prime | 18 - 65 years | 50 Lakhs | 5 years | Rs. 483/month Rs. 5,550/year |
| ICICI Prudential Saral Jeevan Bima | 18 - 65 years | 50 Lakhs | 5 years | Rs. 701/month Rs. 8,205/year |
| HDFC Life Saral Jeevan Bima | 18 - 65 years | 50 Lakhs | 5 years | Rs. 1,101/month Rs. 12,579/year |
| PNB MetLife Saral Jeevan Bima | 18 - 65 years | 50 Lakhs | 5 years | Rs.1,275/month Rs. 14,396/year |
There is no harm in having a short term insurance plan to secure your family if you do not wish to buy a term plan for a longer period. You might need coverage just for some years when you have a loan going on so that if something were to happen to you your family can pay it off using the death benefit.
There are a few other benefits associated with buying short-term insurance such as:
Despite a short tenure, the policy still pays the promised death benefit to the nominee which can be used to pay off debts, maintain living standards, and fulfill the objective the policy was bought for.
In exchange for very nominal additional premiums, you can buy yourself an optional rider with a short term insurance plan as well. Please note that you can only add a rider to your plan when purchasing the short term insurance.
With a short-term life insurance policy, you can maximize your tax savings under a few sections of the income tax laws.
Unlike other life insurance products, a short-term insurance policy offers the benefit of life cover for relatively lower premiums. This is because the plan has a short policy duration; therefore, the premium is also affordable for these policies.
Life is unpredictable, so there could be many instances where you may need temporary insurance coverage. Purchasing a short-term insurance plan would be best for the following individuals-
While purchasing short-term life insurance, policy buyers have to submit a set of documents to their insurer.
Here, we've mentioned the list of mandatory documents to buy a short-term life insurance policy irrespective of age & gender.
Check and compare plans from 21 IRDAI-approved term insurance providers before purchasing a term plan.
Know More About Term Insurance Companies
Know More About Life Insurance Companies
Since no one can predict the future, it's better to get an insurance plan even for the short term. However, the only difference between short-term and term insurance plans is that they provide temporary coverage for a short duration. It has relatively lower premiums as compared to other life insurance products.
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See More Term Insurance Articles
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Sahil is a passionate content writer with over two years of expertise in the insurance domain. He uses his knowledge in the field to create engaging content that the customer can relate to and understand. His passion lies in simplifying insurance terminology, ensuring a hassle-free understanding for potential policyholders. With his outstanding collaborative efforts with people, he understands different perspectives and keeps readers' viewpoints at the forefront of his content writing approach.
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