Term Insurance plan is considered to be the best and one of the most efficacious forms of the insurance. In this plan, you get high price coverage at very low premium cost. Term insurance is for a limited period and such a policy is taken completely in the terms of security. You have to take an insurance policy in the middle of this period.
In Term Insurance plan, a fixed sum insured is given to the nominee or family member after the death of the insured and if policyholder survives the term of the policy, then nothing is paid. Its purpose is to secure your family only. According to the terms and conditions it has to be paid for a certain period and if for some reason the amount of payment is not credited, the insurance becomes invalid or zero.
Types of Term Insurance Plana –
- Level Term Plan – This plan provides a coverage for the lifetime. The yearly premium never fluctuates during the policy’s life.
- Income Plan Term Plan – Under this plan, if the holder expires then a fixed monthly income is given to his family.
- Increasing Cover Term Plan – Under this plan 5% or whatever fixed rate is fixed, increases during the life of the policy.
- Decreasing Cover Term Plan – This plan is created in a way that the claim amount decreases with the period of time. The benefits of the plan decrease as the policy ages.
Who can take Term Insurance plan?
- A person whose age is above 18 years and below 60 years.
- Someone who is not suffering from any type of serious illness.
- Someone who is not in a state of dying.
Documents Required for Term Insurance –
Following is the list of primary documents needed:
- PAN Card.
- Recent Passport Sized Photographs.
- Proof of Income.
- Proof of Identity.
- Proof of Age.
- Proof of Address.
Benefits of Term Insurance Plans –
- If Policy Holder dies during the policy period, the full amount of cover is given to Nominee.
- The premiums paid under these are Tax-Free.
- It provides financial security at a low cost for your family.
- It offers much more at a lower cost and is immensely effectual as well.
Some term insurance policies come with additional benefits, called riders:
- Accidental Death Benefit Rider
In this type of rider, some extra premium is charged with the normal premium, and if the policyholder dies in an accident, then his family gets the benefit as an extended sum assured. However, if the person’s death is due to some other reason, then additional sum assured is not available under the Accidental Benefit.
- Return of premium
In this type of rider, the premium of the policy is generally higher and if the policyholder lives till the policy term is complete, then the premiums paid are refunded.
- Termination of premium
In this type of rider, if the policyholder is completely disabled due to some reason then he does not have to pay further premiums. All future premiums are waived. Insurance companies charge a nominal fee for this rider. These riders may increase your insurance expenses a little bit, but if for some reason you are unable, you will not be without a policy cover.
- Critical Illness
In this type of rider, if the policyholder has a major illness (which is covered by the insurance policy) than the sum equal to the sum assured is given to the customer. The point to remember here is that in the event of a critical illness you get all the money and after that, no money will be given. One should not consider it as a Medical claim policy, in which the hospital expenses are paid by the insurance company.
No claim is given for the Critical Illness in this waiting period. Further, when the Critical Illness appears, the policyholder should survive for at least 30 days.
The integration of technology in the insurance sectors has also benefitted numerous enable and anyone can now buy best term insurance plan online.
Edelweiss Tokio Life Insurance helps you to buy life insurance and paying annual premiums. Also, remind you to keep your investment apart from insurance. Before you take the policy, read all the documents carefully and understand its different features and if any point or clause is becoming difficult to understand, one should always feel free to consult with the insurance providers.