Do you want to know the facts of Term Insurance policy and why it is mandatory required for even human life to hold financial assistance for their family, Which companies offered term policy and the best, What are key points and benefits, Check now…
What is Term Insurance for Human Life?
An insurance providing financial security to dependents which is availed after fixed term period or certain frame is termed to be as Term Insurance, where the cash value of policy is zero and it is very less expensive when compared with other Life insurance policy, unlike a full life insurance policy and a return back money, and this Termed Insurance does hold limited basic without have a cash value.
The policy only comes into picture, if in case the policy holder dies and thus the value of agreed Term Insurance can be availed by nominee decided, where it is allowed from a period of 10 years to 30 years and more depending on the health condition and age of policy holder a Term policy is prepared, and the best part of Term policy is that it was anytime changed to life policy which let customer avail all life agreements avails with an increase in installment money.
Why Term Insurance Policy
There are different benefits that Term policy provides which can’t be seen in other type of insurance policy, and it is being served by a major company and it has got few benefits which are listed here, and based on this point one can go ahead to prepare to agree for Term Policy.
- Financial Security: In event of demise, Term policy will allow his depends to build a financial safety. Building a safety net is main aim of Insurance.
- Basic Product: Let you hold a fixed and agreed premium unlike varying and high premium that becomes burden to pay at critical conditions.
- Returns: The return from Term Policy are extremely higher than invested, a policy holder dose receives double the money invested.
- Survival Benefits: The policy of premium plan all policy holder to avail premium refunds after the maturity period had met.
- Policy Term: One can choose to have insurance when he is working and during the same time, he will be sure of his family safety. Later one can retire with fixed return after maturity period.
- Riders: Once can buy extra benefits Rider to avail benefits under death benefit, Critical Illness, Disability, Waiver of premium and more as and when written under policy.
- Choice of Plan: Policy holder does have an option to join they family in Term Insurance or hold single plan for remaining period. Anytime the plan to expand and extend the coverage can be taken up based on the breadwinner of family.
- Tax Benefit: The premium paid can be taken into consideration of Tax benefit of section 80C and at the end of maturity plan the benefit received from insurance can be taken under tax deduction of under section 10(10D) as well.
Term Insurance Providers in India and Offer Policy
- HDFC Life Term (3D Plus Life Option)
- Max Life Online Term Plus
- LIC Term Plan
- SBI Life eShield
- TATA AIA Sampoorna Raksha
- PNB Met Life Mera Term Plan
- PNB Met Life Jeevan Suraksha
- Canara HSBC iSelect
- Aegon Life iTerm
- Kotak eTerm Plan
- India First e Term Plan
- Future General Flexi Online Term
- Bharati Axa Flexi Term
- Exide Life Smart Term Comprehensive
- ICICI Prudential iProtect Smart
Term Insurance Key Points in Selection
This insurance policy is termed as most traditional form with also varying premium amount as opted. There are few points that need to be consider while buying a Term Insurance policy for sure.
- Buying Policy: you don’t need to put thousands of rupees while buying a policy, despite a minimum premium of 10,000 per annum can figure a total 1 crore Term policy. Increase in premium will directly increase your risk coverage amount and thus this must be considered.
- Keeping Policy: paying the premium of this insured policy as per term selected as monthly, quarterly, yearly or for every 6 months. Policy premium must be paid timely and respective check-up need to be done as agreed to keep policy active.
- Getting benefits: there are no maturity benefits for a Term policy, despite it come with a huge amount if the demise of policy holder. This policy is designed to provide life coverage and thus very provide does goes with same norms, and the beneficiary of policy need to know of Term Insurance, thus, he must avail all benefits after demise as return in agreement.
Benefits of Term Insurance
This flexible premium policy might look different for new policy holder, as it holds money only after demise and will not avail any benefit if the maturity period has been met, and despite this are few benefits of Term Policy which can be chosen for current modern running world.
- Flexible Payment, High Sum Assured of Low Payments, Plan as Choice, Benefit on De, Benefits on Tax, Regular Survival Benefits, Extra benefits for premium members like Reliability, Claim Ratio after settlement, Riders, Inflation, Compression of Policy and getting an insurance advisor.
Despite of many reasons as said above, even human must have 100 times of incomes as sum assured towards term insurance for every human being to continue their dependents normal life happily even the family head sudden demise.
- How much SUM is assured, Should i opt for a Term Insurance plan?
The Sum assured will be directly proportional to number of dependents, investment needs, lifestyle wish to provide to family, children seduction and your monthly expenditure, and by summing all requirements and removing investments will be your premium, which will help you decide a total Sum.
- What tenure to be selected?
Selecting a Term plan for age of 70 will only be eating your premium amount, as all your basic needs of life will be mostly completed by 55 to 60, and thus, any age between this and calculated years from your present age should be selected tenure.
- Do terrorist attacks cover in Term Insurance Plan?
Yes, any demise due to Terrorist attacks or similar actions will be covered under Term Insurance plans and thus your nominee will have a fare option for claim.
- How much Cover should i Buy?
This is the most common formula to calculate the Term Insurance cover is to be 10 times of current Annual Income added with Loans, and the resultant amount should be minimum Cover to be opted.
- What Changes does smoking make for the Term Plan?
Smoking is injurious to health and thus it affects a lot on your premium value, Despite being health concerns, the pack of cigarettes you buy everyday along with medical expenses made for it changes the process of the Term Plan for a smoker.