Term insurance is a pure form of life insurance. It offers financial protection to the policy beneficiaries for certain years against regular premiums. If the insured person dies during the policy term, their beneficiaries get the death benefit payout. This amount replaces the insured's income for at least some time. Term insurance is the most affordable form of life insurance as it offers high protection at lower premiums than the rest of the insurance products.

The best term plan varies depending on each individual's needs. Various factors need to be considered while choosing these plans, such as the sum assured depending on your needs, payout features, premiums, types of policies to opt for, optional benefits, and much more. The claim settlement ratio is the other crucial thing that makes a plan the best. It refers to the number of claims resolved in a year divided by the number of claims received in a year multiplied by 100.

Yes, it is covered under section 80c of the Income Tax Act of 1962. It helps individuals save their taxes and provides protection. Under section 80C, one can claim deductions against term insurance. The maximum limit for an individual to get a tax exemption is Rs. 1.5 Lakh every year. Apart from this, people can add riders and optional benefits and get exemptions under 80D. 

Group term life insurance covers multiple people under the same policy. As the name suggests, a group term plan is a single policy generally bought for a group of people, such as organisations, NGOs, etc. It covers the group of people until and unless they are no longer associated with the organisation or NGO. group insurance can be converted to an individual plan, but the cost will increase. 

Terminal Illness is an optional rider or benefit offered to the policyholder. The rider helps you financially if you are diagnosed with a life-threatening illness. It pays the policyholder a lump-sum amount for treatment, which is deducted from the death benefit. Generally, the chances of survival are next to none in such illnesses. A policyholder can choose to add this rider to their term plan.

A savings plan is a type of life insurance policy that helps policyholders save funds and provides them with insurance coverage. It is a low-risk investment that provides stable returns. A savings plan helps develop a habit of saving and makes life easier in the future. 

Savings plans should be opted by those who want to save for their future. The plan offers various benefits, such as: 

• Financial coverage to the policyholder’s loved ones on their unfortunate death  

• Incorporates a saving habit 

• Tax saving option in insurance  

• Helps in meeting goals etc. 

The saving goal of each individual varies from person to person. Every person saves according to what they would like to attain. There are various ways and reasons to save. It may be for a financial goal or, emergencies, etc. Depending on your needs, you can save a portion of your money every month. This percentage of your earnings can vary depending on your spending on essential things, but 15-20% of your earnings are suggested to be kept as savings. 

Both savings and investment plans secure your future and are considered the same thing. But they are not.  
 

In a savings plan, a person sets aside money for future goals and emergencies. This money is risk-free or very low-risk. The same is not the case with investing. Investors can either lose their money or gain money depending on the market situation. 

Investing in a good short-term investment plan is a great option when you know you want to cash it out any time soon. These investments give you that option as they are highly liquid. The following are some of the good short-term investments: 

• Savings Plan 

• Savings Account 

• Fixed Deposit  

• Debt/ Equity Mutual Funds 

• National Savings Certificate 

• Stocks, Commodities & Derivatives Market