In today's age, people always want to secure the financial future
of the family, so they can lead a decent lifestyle even after their
unfortunate demise. Term plan is the answer to secure your family
against financial hardship, when you are not around.
Buying a term
insurance policy provides a sum insured to the nominee/beneficiary, in
the event of death of the life insured.
Benefits/Advantages of buying a term plan
Death Cover:
Term
plans provide pure life cover and it becomes a must buy, if you are the
only wage earning member in the family. In case of your untimely death,
it pays an amount equivalent to the sum insured to the family, so their
finances are not affected.
Fulfill Financial Objectives:
In
case of untimely death of the life insured, a one time lump sum payout
equal to the sum assured helps accomplish major financial goals like
child education and marriage. The payout from a term insurance plan also
helps pay off debts such as home loan or car loan.
Ensures Regular Income:
Some term plans are available with lump sum payout plus monthly income
to the family, when you are not around. These types of term plans help
your family meet the regular expenses with ease.
Attains Maturity
Amount: Typically, term plans do not offer any maturity benefit, but
TROP plans offer the maturity benefit, and thus, returns the paid
premiums at the maturity of the policy, provided the insured survives
through the policy term.
Opt for Additional Coverage:
You also have the option to choose riders with a term plan. Riders such
as Accidental Death Benefit, Disability rider, Critical Illness, and
Income benefit Rider help enhance protection to your base policy.
Major
factors to consider before buying a term plan Want to buy a right term
plan that can ensure the financial well-being of the family? Following
are the key aspects you should consider prior buying the plan.
Adequate Cover:
Choosing a right cover amount ensures that your family gets the payout
that can cover day-to-day and other major expenses like children's
education/marriage, paying off debts, etc. Buying a plan with an
inadequate cover is of no importance.
Policy Tenure:
It is advisable to choose a policy tenure, so you can pay off all major
financial liabilities. Avoid choosing a shorter policy that may end up
when cover is required the most. It's best to opt for a policy that
offers flexible tenure options, so you can choose tenure depending on
your protection needs.
Consider Inflation: When looking to buy a
term plan, it is advisable to make an estimate about the inflation and
then get a life cover that can easily cover your family's financial
expenses at a time say 20 years from now. You may consider the inflation
rate while picking the sum assured for the policy.
Claim Settlement Ratio:
Claim Settlement Ratio gives you an idea for the number of claims
settled by an insurer. Higher ratio signifies that the insurer is
reliable, when it comes to settlement of claims. It is thus advisable to
choose an insurer that has the highest claim settlement ratio.
Choose Riders:
When it comes ensuring financial protection for the family, you never
want to compromise it in any manner. Choosing right riders with the term
plan always boost protection. Riders help enhance protection, provided
you have opted for the most appropriate rider/s. Riders are available on
payment of additional premium, so choose it wisely.
Read Policy Terms:
It is advisable to go through the policy benefits & inclusions and
term & conditions, so you can assess the suitability of the plan for
your family. Choosing the right term insurance plan would help build a
secure financial future of your family.
Compare Plans Online:
Prior buying a term plan, it is essential to compare plans from several
insurers. Comparing plans online provide you an option to explore
various term plans & its benefits. It helps you figure out a plan
that would be the best fit.
Insurance comparison portals such as http://www.comparepolicy.com helps you make an easy comparison. You can also buy it from there with huge discounts.
Assess
your protection needs, choose a term plan and invest with the right
insurer is the key. Insure your life and ensure your family's
protection.