Term insurance is a particular type of life insurance policy that offers excellent financial leverage to the immediate family of the insured in case of the death of the policyholder. It is one of the selected investment options available in the market today that offers a high sum insured in exchange for low premiums.
A part of the life insurance portfolio, the term insurance provides comprehensive coverage for a specific period or a particular 'term.' If the policyholder passes away during the timeframe specified in the policy and the policy is active, then a certain amount of money as death benefit will be paid. Compared to permanent life insurance policies, term insurance is much more affordable. However, unlike permanent insurance policies, the term insurance does not have any cash value. In simple words, the guaranteed death payout is the only value of this policy.
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|Plan Name||Waiver of Premium|
|Pru iProtect Smart||Free|
|Click 2 Protect 3D Plus||N/A|
|Protector Plus Plan||Paid|
|Term Plan eProtect||N/A|
|Mera term Plan||N/A|
|Life My Term +||Paid|
|Smart Term Plan||Paid|
|Flexi Online Term Plan||N/A|
|Flexi Term Plan||N/A|
|eTouch Lump sum||Free|
|Family First Term Insurance Plan||N/A|
|Cash Back Term Plan||N/A|
|Online Term Plan Plus||Included|
|Maha Raksha Supreme||N/A|
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Buying term insurance plan is not a difficult task as you can do either online or offline. Although the old offline method is still operational, it is the online method that has caught the attention of all prospective customers. It is easier, safer, and fast. When you are intent on buying term insurance plan, the online option is more lucrative as there is no prospect of getting stuck in formalities. A person can visit the website of any insurance company or a common insurance platform to generate a quotation. For this, one need to put in basic biological details, choose riders for any additional benefits (premium will increase marginally if riders are chosen), choose the sum assured, and then make the required online payment for the premium. When these steps are successfully completed, the company will first send a soft copy of the purchased policy, followed by the hard copy by mail.
The term plans help a person to secure his family at the lowest cost financially. It is essential to enumerate the essential features of the plan so that one can make an easy decision on buying term insurance plan.
Here are the key features of a term insurance policy:
Some of the core benefits of term insurance policies are as follows:
The term insurance plans are also a type of life insurance plan. Still, they are inherently different as term plans have no returns at all. The policyholder will be insured for a certain period, say 40 years. The premium needs to be paid annually or half-yearly or monthly as the case may be. The amount of premium will be cheaper when you buy term insurance when you are a non-smoker and buy at a young age. Unlike other life insurance plans, the money here is not recovered as the only payout here is the death benefit. The nominee of the term policy will get the sum assured only after the death of the insured. There are no maturity benefits and surrender value.
Buying a term insurance plan is a financially important decision, and it should be done very carefully. It provides a lump sum amount for your family when you are not there and thereby looks after their dreams. Here are certain things one should consider in mind while purchasing the policy.
Deciding on the insurance cover is a crucial decision and never makes the mistake of choosing a random amount. Many experts believe that you should select an amount that is 300 times your current monthly expenses
It is advisable not to lie to the insurer. If you are a smoker, then you must disclose that or else the claim can get rejected. So disclose all information, verify it, and then submit the form.
Do not choose any random person as your nominee. If you are married, then it is better to add your wife or your child as your nominee. The nominee is the person who will receive the money after your death.
A1. Online transactions are very secure, and they are done directly on the website of the company. All financial transactions have moved online nowadays, so there is no need to get tensed about buying a plan online.
A2. The payable premium amount depends on several factors. If you suddenly start smoking or drinking, then the amount of premium will increase.
A3. The general life insurance covers are not sufficient, and one needs a higher sum assured for the financial security of his/her family. A lump-sum payout after the death of the insured will take care of any economic instability that the family might face after the sudden death of the policyholder.
A4. The nominees of the term insurance policy will receive the payout even if the insured dies outside of India.
A5. If the policyholder has two separate term policies, then the 2nd insurer must be aware of the 1st policy, and the 1st insurer must give acknowledgment.