Life insurance

Life insurance

Give your family the security cover of a term plan.

 

In a time of uncertainty, everyone wants to secure the future of the family. For those who are single workers in the house and have full responsibility for the house or have a second home loan, the income is limited to them there is no better option than a term plan.

 

What is a term plan?

A term insurance or term plan is a life insurance policy in which the limited person pays a premium at a fixed interval and the sum assured is a certain sum to the beneficiary or nominee in the event of the unfortunate death of the insured during the insurance company. Promises to pay But if the sick person completes the policy term then the insurance company does not provide him any full benefits. The insurance company has also introduced term plans in which the company also offers completion benefits. To get this, the investor has to pay a much higher premium. In return, he does not get any special benefit as a maturity benefit.

   For financial security

 

Actually a term plan cannot be invested that way. Like other insurance plans. This is actually a means of providing financial security to the dependents in the event of unfortunate death of the person so that the family does not have to face financial hardships if the person is not living and they live a dignified life and their needs are fulfilled.

 

     Low premium

 

Term plans have lower premiums than all other insurance plans as there is no investment element in the total assured amount. A person earning 7 to 10 lakhs annually can buy a term plan of 75 lakhs for 70 years with a premium ranging from about 8 thousand years to about 14 thousand years. That is, by paying 1 to 1.5 percent of the annual income as a premium, the investor can insure 75 lakh.

 

Claim rejections less 

 

In general, if the policy is active for 10 years, there are fewer cases of dismissal of claims. An investor can buy a policy from any company, but before that insurance company should give complete and honest details about his health, his habits and his financial condition so that the claim is not dismissed in the event of his unfortunate death.The Insurance Regulatory and Development Authority has directed that no insurance company can dismiss a claim on the basis of concealment of facts after completion of 2 years of the policy. Claim settlement percentage ranges from 97 to 99%.

 

Flexibility

 

One complaint of the trem plan is its flexibility. Today, most term plans can be taken online. In many online policies, companies do not insist on health checkups. If the sum assured is less than or equal to 50 lakhs. However the sum assured during the renewal cannot be increased.But there is always an option to get a new plan to close the old plan if needed. At the end of the policy term, the option of converting the term policy into an endowment policy without taking a second medical examination is also available in many term plans.

 

Riders’ Choice

Term plans come with additional riders that offer additional benefits at a much lower cost. Accidental death, faith or partial disability, critical illness, premium exemption and income benefit are some of the available options.

 

           Less brokerage 

 

Brokerage for term plans is very low or ranges from 5 to 6% on average. If online term plan is purchased, the brokerage cost will be 0.

 

Keep these things in mind

 

Do not hide information :— Remember that the term plan is to help the family in the event of any untoward situation. Therefore, there should be no problem in the claim settlement. For this, the investor should not hide any information regarding his health and financial condition. If the investor is a smoker then he should definitely inform him. This will definitely increase the premium, but there will be no problem in the claim settlement.

 

Medical test needed :— A medical test is done by the insurance company for the insured on its behalf. Depending on the test report, the premium may change or the offer can be rejected.

 

Note :— I mean to tell these things that we should think the plan carefully and should not tell any false thing while taking the plan so that we do not face any problem while taking the term plan.

 

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