A straightforward and risk-free kind of life insurance is a term insurance plan. It offers your family financial security against a certain premium paid over a predetermined period of time. At reasonable prices, you can obtain a significant amount of term insurance coverage (sum assured). In the event of the policyholder's passing, the beneficiary receives the sum of the term insurance.
Characteristics Of A Term Insurance Policy
You should be aware of the following top term insurance plan features:
Cost-efficient Strategy
One of the least expensive types of life insurance is term. These plans' premiums are significantly less than those of conventional insurance policies since they do not have an investing component.
Flexibility In Premium Payment
Term plans provide customers flexibility in how they pay for their insurance. Depending on your budget and convenience, you can opt to pay your policy's premium yearly, semi-annually, quarterly, or monthly.
Riders To Enhance The Breadth Of Your Strategy.
This is also another distinctive quality that term plans offer. By paying an additional fee to the insurer, you may add riders that assist you to improve your plan's coverage.
The riders that are offered with term insurance plans are listed below:
Critical illness rider: When diagnosed with a critical illness, the policyholder is given a lump sum payment under the critical illness rider.
Waiver of premium rider: If the policyholder becomes very ill or incapacitated during the policy term, this rider will release them from paying any further premiums.
Accidental death benefit rider: If the insured person dies in an accident, the payout from their term insurance is enhanced. For instance, if the insured has a term policy with an amount assured of Rs. 40 lakh and an accidental rider of Rs. 15 lakh, the policy will pay the nominee Rs. 55 lakh in the event of the insured's demise as a result of the accident.
What Kinds Of Term Insurance Policies Are There?
Level Term Insurance
The benefits are paid to the nominee upon the policyholder's death, and it is the most popular type of term insurance plan in which the sum assured does not vary throughout the policy period.
Plans Offering Back The Premium
These plans, in contrast to level term plans, include specific maturity advantages, whereby the premiums paid by the policyholder are reimbursed if they live to see the policy's maturity.
Longer Term Plans
In this plan, policyholders can choose to have the sum guaranteed rise by a certain percentage each year. The rate of rise is decided at the time the insurance proposal is purchased; depending on the choice made by the insurer, it may be basic or compounded.
Short Term Strategies
It is renewable term life insurance, and the amount of coverage diminishes at a set rate during the course of the policy. Typically, premiums remain the same throughout the course of the policy, while coverage reductions take place every month or every year.
Plans With A Convertible Term
The opportunity to convert a term insurance plan into another plan of your choosing at a later time is one of the plans that some insurers provide. For instance, let's say you signed up for a term plan that lasts for 20 years. If you are ready to do so, you may change it after 5 years to a whole life insurance plan, an endowment plan, or any other plan of your choice.
Renowned insurance companies such as Aditya Birla Sun Life Insurance offer all types of term insurance. If you are planning to get one for yourself, visit their website or contact their executives and have your desired term insurance plan. Premiums are reasonably low, yet you can expect higher coverages.
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