WHAT IS TERM INSURANCE POLICY | WHAT IS TERM PLAN INSURANCE

WHAT IS TERM INSURANCE POLICY | WHAT IS TERM PLAN INSURANCE

WHAT IS TERM INSURANCE POLICY | WHAT IS TERM PLAN INSURANCE

1. What is a term insurance plan? 

Term insurance plan is a type of life cover, this provides coverage for fixed period of time, and if the person expires during the period of this policy then all the death benefits is payable to customer’s nominee. Term plans are designed to help your family requirements in case of your death. It provides definite amount of coverage for definite period of time.

2. Why premiums for taking a Term Insurance Policy are very low?

The premiums for Term plan insurance are the lowest in all the type of policies Reason is since there is no investment in particular, and the entire amt paid is used for covering the risk.

So if the policy buyer dies during the covered term, then all death benefit’s is compensated to the customer’s nominee person.  Also please not there is No survival benefit’s after the policy term finish.

There may be some companies that offer to return the premiums given by the customer if he survived the policy term.

3. How to choose a best term plan?

For choosing best term plan policy one should look at important factors given below:

• Insurance company is good or not.
• How much amt of cover do you need?
• Check and compare company claim reimbursement ratio with all other companies.
• Analyze and read all the terms and conditions of various companies online.

• If possible you can also take two term plans from different insurance companies; it will help you in case of dismissal of claim from one of any two companies.
• You can buy term insurance policy online or offline. Both options are available.



4. Is there any qualification or benchmark  for buying term insurance plan?

The qualification foundation for term protection plan differs as indicated by the safety net providers and the minimum age is 18 years and the maximum age limit is 65 years for buying term insurance plan.

5. Do term insurance plan have a choice to change it to alternative conventional plans?

Yes this option is provided to you in term plan, and you can convert it to the life insurance policy any time during policy period without any extra charges.

6. What are the smoker’s norms in the term plan policy?

Yes it includes the smokers and users of any tobacco products. Smokers who have give up smoking are also eligible .However the duration fluctuates among insurers.

7. Will I get a tax reduction on the term plan premiums paid?

All Premiums paid for life insurance plans are exempted from tax up to a one lakh Rupees under Section 80 C.

We Hope you like our Article on Term plan insurance .Kindly subscribe to our website for more interesting articles like this. 

Types of term insurance plans

Term or Life insurance plans are the most basic, effective and important insurance plans for an individual. Security strategies are also designed to protect your family from unforeseen circumstances by providing them with financial security.

A long-term insurance plan is a long-term insurance plan. At this point, which is called the plan's name, if a life insurer dies, a guaranteed amount is paid. The guaranteed price is the cover selected at the time of purchase of the policy.

Benefits under the scheme are payable only when the insured person dies. If the plan completes the deadline and the person who insures that the insurance is alive, the plan expands. At maturity, no benefit is paid as the insurer is alive. This is a pure protection insurance plan that provides a portal to fight the risk of death. Any other risks, such as survival to maturity, are not made and no benefits are payable in the event of those risks not covered.

Time Level Plans

This is a simple form of term insurance where the guaranteed amount does not change at the time of employment and then the benefits are paid by the nominee upon death of the policyholder.

Premium Return plans

Unlike the category level plans, here the strategies have the benefit of maturity, where the premiums are returned to the policy holder when they have survived to the desired policy.

Increasing Term plans

In this plan, one can choose to increase the amount guaranteed by the annual frequency during the program while maintaining the same premiums. Of course, the premiums for this program will be different than those for the quarterly degree programs.

Decreasing Term Plans

The opposite of the expansion of the term plan is the declining term schedule. Here the guaranteed amount decreases year by year to match the declining insurance needs of policyholders. These plans are most likely taken when one takes out a large home loan or personal loan and pays an equal monthly instalment , or EMI. The guaranteed amount decreases with the frequency selected when and when the EMIs are paid and the loan amount decreases.

Convertible Term Plans

This is a plan offered by other insurance companies where a long-term insurance plan can be taken with the option of converting it to another plan of your future choice. For example - You took a 25-year plan but after 5 years you can get this through the entire life insurance plan, the plan, or any other program of your choice, if you wish.

Term Plans with Riders

This is a separate program where you can purchase passengers such as, critical illness cover, accidental death cover or disability cover etc. for a small additional premium. If you are taking a passenger and you are choosing a premium waiver benefit, then you do not need to pay future premiums in the event you take a passenger.

For those of you who are still wondering why we recommend such long-term insurance plans, let me tell you that a long-term insurance plan is a tool by which you can completely protect your family's financial health in the absence. And the value of this factor is small as the premium for term plans is cheaper among all life insurance plans.

 

Click Here to  Read What is Life insurance.