What is term insurance? How to buy term insurance?
Term insurance is a type of insurance policy that provides coverage for a specified period of time. In this type of insurance policy, if the insured dies during the policy period and his policy is active, then Term Insurance Plans insurance policy is paid to the insured.
How does term insurance work?
At present, there are many different types of term insurance policies available in the market, many of these policies provide the same insurance premium for the term of the policy. Such policies are known as “levelled term” policies. Premium is a specific cost, usually monthly, that insurance charges to policyholders in order to provide them with the benefits that come with the policy.
The insurance company calculates the premium on the basis of life expectancy, age and health. Depending on the policy type chosen by the insured, a medical examination may be required which reviews the health and family medical history of the insured. Insurance premiums are usually fixed and paid for the duration of the term. If the life assured dies before the end of the policy term, then
That insurance company provides payment of death benefits to the beneficiaries of the insured. But if the term of the policy expires and the person dies thereafter, then no insurance coverage or payment is made. However, a policyholder can often extend or renew his policy, but the new monthly premium is based on the age of the person at the time of renewal. And as a result the premium on renewal of insurance is higher.
Term Insurance plans
Term Insurance plans
Types of Term Insurance.
Term insurance is a comprehensive life cover that provides long-term financial protection to you, your family and other dependents. There are many types of term insurance plans, today we will know about some of the best plans.
1.Level Term Plan.
The plan in which the sum assured remains the same throughout the policy term is known as level term. Plans like iSelect Smart 360 Term Plan from Canara HSBC Life Insurance allow you to enhance your cover based on specific life events.
2.Growing Term Insurance Plan.
In this Term Insurance Plans, the life cover amount keeps on increasing automatically. For example, at a simple rate of 5% per annum. If a limit of this growth is reached then the growth stops. Increasing term insurance in this way means that you do not have to worry about increasing your life cover as your lifestyle increases. Term insurance will automatically remain with it.
3.Decreasing Term Insurance.
Decreasing term insurance means that the life cover continues to decline over time, this term cover is generally provided to cover the run in the event of your untimely demise.
4.Renewable annually.
Annual renewable term insurance is renewed as each year passes, but for a higher premium as the insured is one year older. The advantage of annually renewable term insurance is that the coverage is guaranteed to be approved every year. However, this may not be the most cost-effective for everyone due to the increased cost over time.
Key Features of Term Insurance:
After knowing what term insurance is and its information, now let us talk about the main features of term insurance. So friends, a Term Insurance Plans is synonymous with protection – comes a simple life insurance with enough cover to ensure long term security of your family’s financial status and future. For policyholders, term insurance is like an umbrella that provides cover to their family and near and dear ones.
Wide Coverage
Large Life Cover Amount
Parvable Premium Rates
Long policy term – age of entry.
Provides cover for critical illness.
How to buy term insurance?
Follow the steps given below to buy a direct Term Insurance Plans online, the steps given below will help you to buy term insurance online.
First of all, go to the official website of the company you want to buy insurance from.
Look at the various schemes appearing in it, and choose the best plan for yourself.
After selecting the plan, click on the “Buy” button.
Now enter your required personal details.
.Select the policy term and sum insured.
With the help of the steps mentioned above, you can buy any insurance plan online from any insurance company.
Term insurance plan
Term insurance plan online
Which company is the best for term insurance?
Many companies of term insurance are present at present, out of them we have told about some such companies which are from the list of the best companies among all the companies.
ICICI Prudential iProtect Smart
HDFC Life Click 2 Protect Super
Max Life Smart Secure Plus
TATA AIA SRS Vitality Protect
PNB Metlife Mera Term Plan Plus
Bajaj Allianz eTouch Online Term Plan
How to Choose the Best Term Insurance Plan.
While choosing a Term Insurance Plans, we need to be aware of whether the term plan we have chosen is the best term insurance plan. Verify the information given below to select the best plan for you. The information we have given below will help you to choose the best term insurance plan.
While choosing a term insurance plan, consider factors such as the amount of cover offered, payment options, premium payment options available and riders. Never give priority to the premium amount as a factor as a little extra premium sometimes goes a long way in keeping your family financially secure.
In this way, while buying a Term Insurance Plans, once confirm your selected plan that that plan is a beneficial and best plan for you.
0 Comments