All About Term Plan Insurance
All About Term Plan Insurance
In the market there are various types of insurance plans like child insurance, term insurance, life insurance and many more. We discussed here term plan insurance.
Term plan insurance, also known as term life insurance, is slowly picking up in India. Term plan insurance as a concept is working hard to strike big with the Indian consumer, as people still prefer to get back something at the end of their insurance scheme, which is not the case with term plan insurance. In this type of insurance, you pay an x' amount of money, known as premium, for a stipulated term. The insured person is entitled to a return on his investments only if the insured dies in the period specified in the policy. In this case, a death benefit will be paid to the deceased nominee.
So how does term plan insurance or term life insurance work? You pay a certain amount of money every month, towards your insurance scheme for a stipulated term. Since there is no saving element in this and no returns on maturity, the premiums you're paying is really quite low. There are some plans that may give you the premium back, but these are comparatively expensive. Thus, what happens with a term insurance plan is that if you die during the term of your policy, your dependents will get the insurance amount.
One of the biggest and most beneficial advantages of term plan insurance is the low premiums that you have to pay. Thus, term plan insurance is a more sensible option if you are starting out in your career. However, once you have built a corpus you can go in for the other plans that are out in the market.
In term plan insurance, you also have the freedom to add riders or add-ons to your basic term plan by paying an additional premium. The most common riders that people opt for are accident death and disability benefit, critical illness cover, waiver of premium in the event of permanent disability, etc. However, you must maintain your distinction and don't have to add them to your basic cover just because they are offered.
Term plan insurance is basically a no-nonsense insurance plan. All you need to do is to fix an insurance cover, compare the premiums from company to company, and then zero down on your plan. It is important to remember to go through the price list of all companies, because one company offering a low premium for one particular age group may not necessarily do so for all age groups.
Remember, as you grow older, even though your health is good, the premiums charged will be higher.
An added benefit with term life insurance policies or term plan insurance policies is that its applicants have the flexibility of choosing the time period best suited for their situation. Thus, they can apply for a coverage that can last them anywhere between 5-30 years!
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