Annual Term Life Insurance

What Is An Annual Term Life Insurance

An Annual Term Life Insurance is a term life insurance that covers you and your family members against unexpected risks and thus protects your standart of living

What Does This Insurance Cover?

An Annual Term Life Insurance Policy basically covers you for loss of life. It offers a Death Benefit and, at your option, provides coverage for Accidental Death, Permanent Partial and Total Disability Resulting from an Accident, and Pernanent Total Disability Resulting from an Illness.

Death Benefit

The Death Benefit, which may be claimed in the event of your death, helps you:

• protect your family members against loss of regular income,
• ensure that your children continue and complete their education, and
• provide your family members with the financial support they may need, trying to cope with financial hardships they will experience following your death.

Accidental Death Benefit

Accidental Death Benefit, which can be claimed in addition to Death Benefit, helps you:

• relieve the additional burden that may be experienced by your family members following your unexpected death; and
• provide your family members with additional financial support they may need to tackle this unexpected situation.

Accidental Permanent Partial and Total Disability Benefit

Should you become partially or totally disabled due to an accident, this benefit, the amount of which is determined by the percentage of your disability, will help you:

• cover your nursing expenses,
• compensate for loss of income you may suffer due to your being unable to work, and
• cover the costs of changes that you may need to make in your living environment.

Benefit for Permanent, Total Disability Resulting from an Illness

Should you become totally and permanently disabled due to an illness, this benefit will help you:

• cover your nursing expenses,
• compensate for loss of income you may suffer due to your being unable to work, and
• cover the costs of changes that you may need to make in your living environment.

How Long Does This Insurance Provide Coverage?

The Annual Term Life Insurance provides you with coverage for a term of one year. But upon expiry of your Annual Term Life Insurance, you can renew your insurance policy and coverage.

How Can I Determine The Amount Of Premium I Should Pay?

Your insurance premium is determined depending on your age and the benefit amount you choose. Any additional coverage you may wish to include in your policy may also affect your insurance premium, depending on your occupation and hobbies.

How Can I Benefit From Tax Advantage?

Insurance premiums you pay in respect of your Annual Term Life Insurance will also relieve you of your tax burden. According to Articles 63/3 and 89/1 of the Income Tax Law, insurance premiums paid by you are tax deductible up to 5% of your gross income and, on an annual basis, up to the annual amount of the statutory minimum wage.

For example, if your monthly income is TRY 2.000 and you pay a monthly insurance premium of TRY 100, you may deduct your insurance premium amount from your income tax base and thus you have to pay tax only for the remaining amount of your income. Accordingly, if your tax rate is 25%, the tax you have to pay is decreased by an amount equal to 25% of your monthly insurance premium. In other words, you actually pay only TRY 75 for a TRY 100-worth of insurance premium.

To benefit from this tax relief, all you need to do is furnish the documents, evidencing the premiums you have paid, to your accountant or to the accounting department of the company you work for.

General Terms And Conditions

Life Insurance General Terms and Conditions