The best life insurance policy for you will depend on your age and health. But if you are in your 20s, you may want to go with a 20-year term plan because it is the cheapest option and the most flexible. Term life insurance is a type of life insurance that covers the insured person for a fixed period, such as 10 or 20 years. In this article, we will talk about 20-year term life insurance and why it is important for your future, and how it will help to protect you and your loved ones.
Table of Contents:
What is 20-Year Term Life Insurance?
The life insurance policy is a contract between the insured and the insurer. The insurer agrees to pay a specified amount of money to the beneficiary if the insured person dies during the term of the policy. The amount of time that is covered by this agreement is called a "term".
A 20-year term life insurance policy is a type of life insurance that provides coverage for the insured person for the next 20 years. The policy typically has a cash value accumulation component and will have a guaranteed death benefit.
The policyholder pays premiums for the entire term period, which in this case is 20 years. The cash value accumulates during this time and will be paid out upon the death of the insured person. If there is no death during this period, then the cash value will be paid out at the end of it to either cover outstanding premiums or as a lump sum payment to beneficiaries depending on what was agreed on by both parties.
How does a 20-year Term Life Insurance Policy Work?
A 20-year term life insurance policy is a type of life insurance that provides coverage for a period of 20 years. A 20-year term life insurance policy will cover your family for 20 years, and then the coverage will expire.
The term life insurance is one of the most popular types of policies in India. It offers protection at an affordable cost and can be bought by anyone, irrespective of their age or health condition. The only exception is if they have some pre-existing medical conditions that may affect their eligibility. The death benefit will be paid out to your beneficiaries if you die during the term of the policy.
What are the Features & Benefits of a 20-Year Term Life Insurance Policy?
20-year term life insurance is one of the most popular types of term life insurance policies because it provides you with long-term coverage and helps you to build financial security for your family. The features and benefits of a 20-year term life insurance policy include:
- Affordable Premiums: The premium cost of a 20-year term life insurance policy is lower as compared to other short-term periods.
- Flexibility: 20-year term life insurance provides flexibility in premium payment terms.
- Long Coverage: length of the 20-year term life insurance policy can be up to 20 years which means policyholders are covered for a period of 20 years.
- Death benefit: In the event of the unfortunate demise of a policyholder during the term period, the policyholder’s nominee will receive a death benefit in the form of a lump sum amount. This death benefit depends on the premium paid on life insurance policies.
- Tax benefit: This policy provides tax benefits under section 80C of the income tax act 1961.
- Riders: You can add riders to this policy to enhance the coverage of the policy.
- Loans: Certain insurance providers offer loans against these types of term life insurance policies.
- Surrender benefit: Policyholders can get surrender benefits if they select to cancel their policies before maturity.
Eligibility Criteria for 20-Year Term Life Insurance
| Minimum Age |
18 years |
| Maximum Age |
65 years |
| Policy Term |
20 to 100 years |
| Maturity Age |
Based on Policy |
| Premium Payment Term |
Regular Pay, Limited Pay, Single Pay |
| Premium Payment Frequency |
Single, Yearly, Half-Yearly, Quarterly, Monthly |
| Sum Assured |
Based on Policy |
Top 5 Best 20-Year Term Life Insurance Plans in India
The best 20-year term life insurance plans in India are listed below:
Bajaj Allianz Smart Protect Plan:
Bajaj Allianz’s smart protect goal is an individual, life, non-linked, non-participating, single/limited/regular premium payment, savings (ROP), and pure risk term cover plan, providing protection and add-on covers. Let us understand the Features, Benefits, Terms, and conditions linked to the plan:
| Entry Age |
Minimum 18 years to Maximum 65 years |
| Maximum age at Maturity |
75 years |
| Sum Assured |
50 Lacs |
| Premium Payment Term |
Single payment, Regular payment, or Limited payment |
| Premium Payment Frequency |
Monthly, Quarterly, Half-yearly, and Yearly |
Max Life Smart Secure Plus Plan:
The Smart Secure plus plan is introduced to fulfill your financial security needs and provide support in case of any emergencies. Max Life Smart Secure plus plan offers two death benefits. You also get inbuilt benefits such as cover for terminal illness, joint life cover; premium breaks, and additional payout on accidental death these will fulfill your needs.
| Entry Age |
Minimum 18 years to Maximum 65 years |
| Maximum age at Maturity |
85 years |
| Sum Assured |
25 Lacs to 50 Lacs |
| Premium Payment Term |
Single payment, Regular payment |
| Premium Payment Frequency |
Monthly, Quarterly, Half-yearly, and Yearly |
TATA AIA Sampoorna Raksha Supreme Plan:
Tata AIA Life Insurance Sampoorna Raksha Supreme Plan provides financial protection to your family and offers you the flexibility to choose the plan that suits your need.
| Entry Age |
Minimum 18 years to Maximum 65 years |
| Maximum age at Maturity |
65 years |
| Sum Assured |
1 Lac to No limit |
| Premium Payment Term |
Single payment, Regular payment, or Limited payment |
| Premium Payment Frequency |
Monthly, Quarterly, Half-yearly, and Yearly |
ICICI Prudential iProtectSmart Plan:
ICICI Prudential iProtectSmart Plan gives protection for your family and critical illness cover. Life covers up to 99 years and the policy term starts from 40 years.
| Entry Age |
Minimum 25 years |
| Maximum age at Maturity |
70 years |
| Sum Assured |
1 Lac to No limit |
| Premium Payment Term |
Single payment, Regular payment, or Limited payment |
| Premium Payment Frequency |
Monthly, Quarterly, Half-yearly, and Yearly |
Aditya Birla Sun Digi Shield Plan:
Aditya Birla Sun Life Insurance DigiShield Plan is a non-linked term insurance plan. This term life insurance policy has to be chosen as per the requirements of the customer with reasonable premiums. Provides 10 different Aditya Birla Sun Life Insurance Policy options as per your family's needs so they need not compromise on their lifestyle, even in your absence.
| Entry Age |
Minimum 18 years to Maximum 65 years |
| Maximum age at Maturity |
70 years |
| Sum Assured |
1 Lac to No limit |
| Premium Payment Term |
Single payment, Regular payment, or Limited payment |
| Premium Payment Frequency |
Monthly, Quarterly, Half-yearly, and Yearly |
How Much Does a 20-Year Term Policy Cost?
Term life insurance is one of the most popular types of life insurance, and it's also the most affordable. Term life insurance is permanent coverage that lasts for a specific period, and you can stop paying for it at any time.
Calculating the cost of a 20-year term life insurance policy is simple but many factors will affect the price, including your age, health, type of policy, length of coverage, gender, lifestyle, etc. The younger you are and healthier you are, the cheaper your policy will be.
The best way to calculate the cost of a 20-year term life insurance policy is by using an online life insurance calculator. By using this online calculator you can calculate your premium amount in simple steps.
Premium Table of 20-year Term Life Insurance Policies
| Company |
Plan Name |
Total Payout |
Premium (Yearly) |
|
| Bajaj Allianz Life Insurance |
Bajaj Allianz Smart Protect Plan |
Rs. 10 Lacs |
4158/- |
Buy |
| Max Life Insurance |
Max Life Smart Secure Plus Plan |
Rs. 10 Lacs |
4548/- |
Buy |
| TATA AIA Life Insurance |
TATA AIA Sampoorna Raksha Supreme |
Rs. 10 Lacs |
4395/- |
Buy |
| ICICI Prudential Life Insurance |
ICICI Prudential iProtectSmart Plan |
Rs. 10 Lacs |
4858/- |
Buy |
| Aditya Birla Sun Life Insurance |
Aditya Birla Sun Digi Shield Plan |
Rs. 10 Lacs |
4258/- |
Buy |
*The above-mentioned values are for reference purposes only * Refer to our website for exact values.
How to Buy a 20-Year Term Life Insurance Policy?
Buying life insurance is one of the most important decisions you will make. Your family will rely on your life insurance policy to provide for them after your death. A Term Life Insurance policy offers a guaranteed payout for a specific period or term that you choose. Step-by-step guide on how to buy a 20-year term life insurance policy.
- Go to PolicyBachat Website. Click on Life Tab
- Provide the required information such as name, date of birth, etc.
- Compare premium rates from the list of companies provided
- Select the plan which suits your requirement
- Make payment via online payments.
Conclusion
20-year term life insurance is a type of life insurance that has the longest coverage period. Term life insurance can be used as an investment vehicle for someone who doesn't have the money to put into a more substantial investment, but still wants some form of protection in case something happens to them.
It also provides peace of mind for people with large debts and mortgages who want to feel secure that their family will be taken care of if they were to pass away unexpectedly. So compare life insurance quotes to get the best 20-year term life insurance policy at PolicyBachat to secure your loved ones.