A term insurance policy is a policy that provides financial stability to an individual and their family for a set period of time.
The plan makes sure to keep the health of everyone insured in check and to take care of any finances that are related to medical treatment for a person.
Term insurance plans are plans that last for only a set amount of time and have a number of features and benefits to the plan itself. They’re particularly beneficial for any worker reliant on their fixed income to support their family. Businesses provide term plans as a employee incentive and they last usually as long as the employee is employed with the business.
A term insurance plan is an investment plan that has its own death benefit to the plan itself. The sum assured for any term insurance policy is decided by the policyholder itself. The insurance plan covers more than a regular insurance policy does. The premiums for a term insurance policy are all dependent on the sum assured. Premiums can be paid according to the convenience of the policyholder.
Need Should You Buy a Term Insurance Plan?
For everyone who wants to secure the health and the lifestyle of not only themselves, but also for their families as well, being insured under a health insurance plan is a necessity. With the improvement in the overall economic conditions of India, more businesses provide them and more individuals can afford to get themselves an insurance plan.
No one can predict the future, to save oneself from the unwanted situation of having financial issues in a medical condition, insurance plans are bought. The plans are a helping hand that provide financial aid under all medical conditions not only to an individual but for the entire family as well.
Unlike a normal insurance plan, a term insurance plan is far cheaper in comparison and has a definite guarantee of taking care of any medical conditions. There are many exceptions that are there when it comes to a normal health insurance plan which is not the same for a term insurance policy.
A term insurance policy covers nearly all types of medical conditions. The waiting period for pre-existing diseases are also far less as compared to a term insurance plan.
For those who are wanting to secure themselves and their families as soon as possible with an affordable insurance plan that covers a wide range of diseases, a term insurance plan is the perfect choice.
Benefits of a Term Insurance Plan
Some of the benefits of a term insurance plan that makes it different from a regular insurance plan offered by any insurance company in India include:
- Anyone insured under a term insurance plan can choose the sum assured for themselves.
- Death benefits and returns are given to the nominee at the demise of the insured. This helps to secure the family of the insured after they can no longer do the same.
- The policy gives a certain amount of money on a regular basis for policyholders who have become disabled and unable to earn an income for themselves due to a medical condition or an accident.
- A great amount is given to those who policyholders who are diagnosed with a critical illness.
- Additional sum assured for the nominee of the policyholder and their family in the case of accidental death.
- Anyone who is insured under a term insurance plan is free from paying a certain amount of money in the form of tax as per the Income Tax Act.
- Term insurance plans have survival benefits, maturity benefits and even additional rider benefits for any policyholder who has bought a plan.
- Anyone who is above the legal age of 18 years can avail of a term insurance plan.
Buying a Term Insurance Online
Everything is available on the internet. Buying a term insurance plan online is an extremely easy process.
All the different types of term insurance plans are present on online insurance sites along with their different features, inclusions and exclusions. This makes it easier for anyone who wants to buy a term insurance plan easier to choose the plan that fits their needs perfectly.
Buying a term insurance is an important decision and certain questions about the term insurance itself need to be answered before any plan is officially bought.
1. Is the Insurance Company Reliable?
A life insurance policy from a reputed insurance company is the best choice for anyone who is looking to buy a good insurance plan. A reputed insurance company will have greater trust to customers. Customers will rely on the company depending on the reputation of the company. It is always advised for everyone to take an insurance policy from a reputed company.
2. What are the Expenses for a Term Insurance Plan?
Though the sum assured for a policy and the premium of the policy are all dependent on the policyholder himself/herself, it is important for the individual to keep in mind the expenses that come along with it. Sufficient amount of money should be kept in side in order to make sure that there is no financial disturbance or inconvenience in the lives of any who want to buy a term insurance plan.
3. What is the Claims Settlement Ratio of the Policy?
The claims for an insurance plan is the most important factor any term insurance plan. The plans that have a higher and faster claims ratio are the policies that are bought most by customers all over India. The claims settlement ratio of any company defines the reputation of the company and the relation of the company with all of it’s clients. Thus, companies that have a 100 percent claims ratio are the best companies according to customers.
4. What other Additional Covers are Included?
Every term insurance plan comes with some additional covers that are also an essential plan of the term insurance. These additional covers can either be free or they can be paid in nature. Understanding the additional covers and choosing them wisely all should be considered before a term insurance plan is bought.
5. What are the Maturity Benefits of a Term Insurance Plan?
Term insurance plans are types of investment plans that have a lot of benefits when the plan matures. There are different types of benefits like survival benefits, death benefits and maturity benefits for each term insurance plan. To make sure that these all are included the different types of benefits are all necessary to be considered before a term insurance plan is bought online.