Time Insurance Company: A Complete Guide

In today’s uncertain world, insurance has become an important aspect of our lives. We all want to secure our future and protect our families from unexpected events. There are different types of insurance policies available in the market, and one such policy is time insurance. In this article, we’ll discuss what time insurance is, how it works, its benefits, and much more.

What is Time Insurance?

Time insurance also called term life insurance is a type of life insurance policy that provides coverage for a specific period. It is a pure protection plan, which means it only provides death benefits to the nominees if the policyholder dies within the policy term. If the policyholder survives the policy term, there is no maturity benefit in this policy.

Most insurance companies offer time insurance policies with different policy terms ranging from five years to thirty years. The policyholder pays a fixed premium amount during the policy term, and in exchange, the insurance company provides death benefits to the nominees if the policyholder dies during the policy term.

How Time Insurance Works

Let’s understand how time insurance works with the help of an example:

Mr. Kumar is a 30-year-old software professional who wants to secure his family’s future in case of his untimely death. He decides to buy a time insurance policy with a policy term of twenty years and a sum assured of Rs. 50 lakhs.

He pays an annual premium of Rs. 10,000 for twenty years. If he dies within the policy term, his nominees will receive the sum assured of Rs. 50 lakhs. However, if he survives the policy term, there will be no maturity benefit, and he will not receive any amount from the insurance company.

Benefits of Time Insurance

Time insurance has several benefits, which are as follows:

Affordable

Time insurance is one of the most affordable types of life insurance policies available in the market. As it is a pure protection plan, the premium amount is low compared to other insurance policies.

Flexible

Most insurance companies offer time insurance policies with different policy terms, which gives the policyholders the flexibility to choose the policy term as per their needs and requirements.

Tax Benefits

Policyholders can claim tax benefits on the premium paid towards time insurance under Section 80C of the Income Tax Act. Moreover, the death benefit received by the nominees is also tax-free under Section 10(10D) of the Income Tax Act.

Financial Security

Time insurance provides financial security to the policyholder’s family in case of his/her untimely death. The nominees receive the sum assured, which can help them to pay for their daily expenses, education, and other financial needs.

FAQs About Time Insurance

Q. What is the minimum and maximum policy term for time insurance?

A. The minimum policy term for time insurance is five years, and the maximum policy term is thirty years.

Q. Can I renew my time insurance policy after the policy term expires?

A. Most insurance companies offer the option to renew the time insurance policy after the policy term expires. The policyholder needs to pay the renewal premium to continue the policy.

Q. Is it necessary to undergo a medical examination to buy a time insurance policy?

A. Insurance companies may ask the policyholders to undergo a medical examination before issuing the time insurance policy, depending on their age, sum assured, and other factors.

Q. Can I surrender my time insurance policy before the policy term?

A. Most insurance companies offer the option to surrender the time insurance policy before the policy term. However, the policyholder receives surrender value, which is lower than the sum assured.

Q. What happens if I stop paying the premium towards my time insurance policy?

A. If the policyholder stops paying the premium towards the time insurance policy, the policy will lapse, and the nominees will not receive any death benefits in case of the policyholder’s death.

Conclusion

Time insurance is a simple and affordable life insurance policy that provides financial security to the policyholder’s family in case of his/her untimely death. Before buying a time insurance policy, it is essential to understand your needs and requirements and choose the policy term and sum assured accordingly.