🚂 Current Fix Deposit Rates 🌞 SBI - General Citizen 3% to 7.10% Senior Citizen - 3.60% to 7.60% 🌞 HDFC - General - 3.00% to 7.25% Senior Citizen - 3.50% to 7.75% 🌞 ICICI - General - 3% to 7.10% Senior Citizen - 3.50% to 7.60% 🌞 PNB - General - 3.50% to 7.25% Senior Citizen - 4% to 7.75% 🌞 Kotak Mahindra - General - 2.75% to 7.20% Senior Citizen - 3.25% to 7.70% 🌞 Axis - General - 3.50% to 7.10% Senior Citizen - 3.50% to 7.85% 🌞 Bank of Baroda - General - 3% to 7.25% Senior Citizen - 3.50% to 7.55% 🚂 Current Recurring Deposit Rates 🌞 SBI - General 4.40% to 5.50% Senior Citizen 4.90% to 6.20% 🌞 ICICI - General 3.50% to 5.50% Senior Citizen 4% to 6.30% 🌞 HDFC - General 4.40% to 5.50% Senior Citizen 4.90% to 6.25% 🌞 KOTAK - General 4.30% to 5.20% Senior Citizen 4.80% to 5.70% 🌞 AXIS - General 4.40% to 5.75% Senior Citizen 4.65% to 6.50% 🌞 IDBI - General 7% to 7.15% Senior Citizen 7.50% to 7.65% ☁️ National Pension Scheme - 9% to 12% pa ☁️ Employees Provident Fund - 8.15% pa ☁️ Public Provident Fund - 7.1% pa Term Insurance

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Term Insurance

 

A Term insurance plan is a type of life insurance that provides death benefit protection for a specified term period.  It was designed to provide coverage for a specific term period like 10 , 20 and 30 years, some companies may offer more customized plan. Term insurance is often chosen by individuals who are frequently travelling and having financial responsibilities.  Term insurance offers substantial payout to the family of the insurer, if he/she passes away during the policy.

Some key features:

Coverage Period: It provides coverage period in terms of duration, which is typically set of number of years that is 10, 20 and 30 years.  Companies may customize the package for to attract more customers.

Death Benefit: The term insurance provide death benefit to the investors, if the insured person passes away during the policy term.  This benefit is paid to the beneficiaries according to the policy plan and it is tax free.

No Pay out:  Term insurance does not accumulate a cash value, this means if the policy holder survives the full term period, he will not get any amount.

Affordability:  Since there is no any pay out or surrender value, it is cheap and affordable as compared to other life insurance.  Individual can start the policy at very low cost or depending upon his/her medical report.

Fixed Premiums: The Term insurance policy have fixed premiums for duration of the term.

 Example:

Mr. Srinivasan is a professional financial advisor working for an MNC company in Mumbai. He is married and has two children; his wife is a homemaker, and both children attend a reputable school. Initially, he lived in a rented house but later decided to purchase a flat in a prestigious area. To fund this, he took a loan of Rs. 80 lakh. Additionally, he acquired an SUV for daily commuting to the office and for family outings on weekdays, with the car costing Rs. 20 lakh.

Srinivasan's total debt includes:

Home Loan: Rs. 80 lakh

Car Loan: Rs. 20 lakh

School Fees: Rs. 4 lakh per year (Rs. 2 lakh for each child)

Other monthly expenses: Rs. 60 thousand (covering maintenance, electricity, gas, petrol, and other necessary charges)

One day, while traveling to Pune in his car, Mr. Srinivasan met with an accident and sustained serious injuries. Unfortunately, he passed away before reaching the hospital. As he did not have a term insurance policy, his family found themselves in financial distress. With no external financial support, they not only faced the prospect of losing their home and car but also had to leave Mumbai and relocate to a village where his father resides.

Conclusion:

Had Mr. Srinivasan timely secured a term insurance policy, his family would have been able to navigate this unfortunate situation without the burden of financial strain. They could have maintained their lifestyle without the need to abandon their home and car, and there would have been no necessity to relocate from Mumbai.


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