What
is Term Insurance?
It is a life insurance plan that provides a financial coverage to the beneficiary of insured person for a defined period of time.
These are high risk covers with low premiums.
In simple words, the death benefit will be paid to the beneficiary in lump sum or in parts.
It is a life insurance plan that provides a financial coverage to the beneficiary of insured person for a defined period of time.
These are high risk covers with low premiums.
In simple words, the death benefit will be paid to the beneficiary in lump sum or in parts.
Why should we invest in Term Insurance?
Low Premium: Since there is no investment element in the insured amount, the premium for all term plans is much lower than any other insurance plans. Any individual might have to pay only about one percent of his annual income to get a life cover. Since this element is not there in the insured amount, the premium for term insurance is less than that of other insurance policies. For example, a policy of 1crore would have a premium of only Rs7, 400 per annum.
Provides financial security: An untimely death is unfortunate and so are the financial liabilities that require to be borne by the family. To prevent such a situation from arising, it is a good idea to invest in a term plan that would take care of the financial needs of the family.
Low claim rejection: When you buy any term plan, make sure you disclose correct facts about your health condition, finances, habits etc. As per the recent Insurance Regulatory and Development Authority (IRDA) mandate, no insurance company can claim that there has been a non-disclosure of facts after two years of the policy becoming effective.
Highly flexible: Flexibility is one of the major advantages of a term plan. You can select any online or offline plans for which health plans are not mandatory. You can also change the plan and customize a term plan as and when required.
A term plan has got various advantages. It takes care of the burial and funeral expenses, covers education and other expenses of the family, pays off loans/debts that might have been taken during the lifetime of an individual.
Thank you
Regards
Author – Ami Zatakia
Kautilya
IBS Mumbai
Low Premium: Since there is no investment element in the insured amount, the premium for all term plans is much lower than any other insurance plans. Any individual might have to pay only about one percent of his annual income to get a life cover. Since this element is not there in the insured amount, the premium for term insurance is less than that of other insurance policies. For example, a policy of 1crore would have a premium of only Rs7, 400 per annum.
Provides financial security: An untimely death is unfortunate and so are the financial liabilities that require to be borne by the family. To prevent such a situation from arising, it is a good idea to invest in a term plan that would take care of the financial needs of the family.
Low claim rejection: When you buy any term plan, make sure you disclose correct facts about your health condition, finances, habits etc. As per the recent Insurance Regulatory and Development Authority (IRDA) mandate, no insurance company can claim that there has been a non-disclosure of facts after two years of the policy becoming effective.
Highly flexible: Flexibility is one of the major advantages of a term plan. You can select any online or offline plans for which health plans are not mandatory. You can also change the plan and customize a term plan as and when required.
A term plan has got various advantages. It takes care of the burial and funeral expenses, covers education and other expenses of the family, pays off loans/debts that might have been taken during the lifetime of an individual.
Thank you
Regards
Author – Ami Zatakia
Kautilya
IBS Mumbai
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