What is Term Plan? | Benefits of term insurance

Today, money is needed in the life of every human being. In such a situation, if a person takes any insurance plan of his life in the form of saving and gets himself insured, he gets a proper way to fulfill the increasing responsibilities and the goal of his life. You would also need insurance for responsibilities like a home loan personal loan in such a situation.

Buying insurance is very important for every human being. If you choose the right insurance policy, it is very suitable for you in such a situation. Choosing the right insurance policy according to your needs is also a challenging task, as many insurance companies in the market today offer different types of insurance. Each insurance product has its unique characteristics.

This task becomes more complicated when different calls come from different insurance companies claiming that their manufacturer, i.e., how much better their policy is than other companies, is very difficult to reach any decision. 

The name of the policy we are talking about today is a term plan insurance policy. Today, through this post, we will tell you what a term insurance plan is, the features of a term insurance plan, information about the advantages and disadvantages of term insurance plans, what abilities are necessary for this, about all these things. I am giving you detailed information…

What is a term plan?

You all know how important insurance is for every person today. There are different types of insurance for the person. You can get any insurance plan done at your convenience. The term insurance plan gives term cover. You can get this life insurance policy for a specified period instead of paying a certain premium if any of the insured lives during the period specified in the term insurance policy. Causing accidental death. In such a situation, the person who is the nominee gets the loan amount, in which the insurance company has to give a certificate of death of the person holding the insurance.

As in the present times, due to the uncertainty of the COVID-19 global pandemic and lack of money, it becomes even more important to ascertain how you will be able to take care of your loved ones in the days to come. Term plan helps in providing you with such financial support. Term insurance plans are certified under India’s Insurance Regulatory and Development Authority. Under the guidelines, this assured payment is also made to the insured person.

Investing in term insurance

Term insurance is a comprehensive project as it offers comprehensive coverage at an affordable price. In the best term insurance plan, you can choose a large investment amount for the security of your family by investing a small amount. Let us know why it is essential to invest in a term insurance plan…

1. For Family Protection – Have you ever thought that if you have taken a term insurance plan, you are the sole breadwinner in your family, then what will happen to your family if you are not there. In such a situation, a term insurance plan provides financial assistance in the person’s time of need. The cost of a term insurance plan is significantly less, and the benefits are higher, making personal life a lot easier.

2. For some goal in the future – All the people today move ahead with some goal in their life. In such a situation, a person needs money to fulfill his goal, we can earn money only as long as we are alive, but with the help of a term plan, even after the death of any insured, any loan Or for other loans also, the person can repay that loan from the loan amount. Term insurance is the only simple way to secure your family.

3. For Tax Savings – Term insurance plans provide additional benefits by adding riders. Under a term policy, you can get benefits under the Act.

4. For added benefits – Term plans have riders covering all possible events like Personal Accident Premium Waiver, Any Critical Illness, etc.

5. Large sum insured at a low cost – Term insurance plans are also available for meager. Apart from this, the amount of insurance received is in lakhs of crores of rupees, and mainly it is 20 to 25 times more than the salary we are getting in our life. If the insured’s death in the year of the accident occurs for any reason, then the person named in the nominee’s name gets the total amount of insurance.

6. Ease of payment – ​​When it comes to payment in term insurance, we have to choose the premium paying mode to pay this amount in a month, quarter, half-year, or a year. In such a situation, you can choose any of these modes according to your convenience.

Features of term insurance

The main features of term insurance are as follows-

• In term insurance, the minimum age of the individual is 18 years, and the maximum age is 65 years.
• There is a grace period of 15 to 30 days, depending on the type of term insurance policy.
• The term insurance plan offers flexibility in terms of listening. You can choose the plan based on a single life or joint life.
• Term insurance consists of a single pay limited payment regular payment of premiums.
• Term insurance claims for the person’s entire life at the age of 25 to 65 years are available on different claims according to the policy.
• The amount of term insurance premium is given based on the applicant’s age and the Sum insured.
• If the policy is revived for any reason, the facility of the differential nomination of 2 years from the date of premium is not paid.
• Monthly, quarterly, half-yearly, or yearly payment has to be made by the insured at a fixed time to make the payments in the turnover plan.
• The policy coverage under term insurance is the full benefit at policy maturity and till death.

Types of Term Insurance

There are different types of term insurance whose information is given below.

1. Pure Term Insurance Plan – Term insurance is also called Vanilla plan. This is a straightforward plan, here write in the beneficiaries, on the death of the insured during the term of the plan, the Sum assured is received, although the insured does not get any Doesn’t get the money survives during the term of the term plan

2. Return of Premium Plan – All term plans are the same as per the terms and conditions of the term insurance policy. In this plan, if the insured survives during the term of the term plan, then the total premium amount paid by the insurance company is returned to the insured.

3. Group Term Insurance Plan – Mainly, the companies take this plan for their employees. This plan covers all the members of a policy group. A group term insurance plan is cheaper for all the group term insurance company members. Covers the old age employee is not covered under this plan.

4. Decreasing Term Insurance Plan – Under this plan, the person’s Sum insured decreases over time based on the individual requirement of the insured. For example, if a person feels that his savings and investments will increase with time, he can opt for a decreasing term insurance plan.

5. Increasing Term Insurance Plan – If a person feels that their family will need more money over time due to rising inflation or to meet other expenses, he can opt for the increasing term insurance plan here. Still, the Sum insured increases with each passing year.

6. Convertible Term Insurance Plan – In buying a term insurance plan, if the insured feels the need to switch to a new plan, they are at liberty to do so in Karma Insurance Plan. For example, if the dishonest taker wants to convert the Saral plan into an advance plan after hearing the action plan, he can do so of his own free will.

7. Joint Life Insurance – Multiple term plans can be taken jointly, this is called joint life insurance plan, for example, this time plan of life insurance can be taken in a business partner or together with husband wife in this case If one person dies, the other partner gets the Sum insured and can continue the plan as before. And if the other person also dies for any reason, then the amount of insurance is given to the nominee named under this policy.

Term insurance premium

The term insurance premium is the money you also pay to any insurance company to get coverage. An important point to be considered while listening to an insurance plan. The premiums paid for term insurance are mainly considered to be cheaper. It is essential to compare the premiums of different plans before buying term insurance.

This can also be done by using a premium calculator. This premium calculator is an online tool to calculate the premium. Although the calculator does not give the premium amount information only gives an estimate, the premium of a term plan depends on the following points of calculation –

In term insurance plans, younger individuals pay lower premiums, increasing with age.

Higher Sum Assured means a higher premium, and lower Sum Assured means a lower premium. If the policy is for the longer term, its premium is higher.

A smoker has to pay a higher premium than a non-smoker, and the premium for a man is higher than the premium for a woman.

Any pre-existing disease increases the risk of intake, increasing the premium amount.

Benefits of term insurance

Insurance proves to be very beneficial in the life of every person today. Let’s know the benefits of taking term insurance.

1. Large life cover available at the low premium amount – Term insurance plan WhatsApp has a lot less than any other life insurance. Its penum night is significantly less than even a commoner can easily sister it.

2 Very easy to understand – Term insurance is better than any life insurance or life cover plan, and it does not have any happy terms. The term insurance plan covers your life for a specific period. Investment is not a component, so it is easy to understand.

3. Multiple Death Benefit Payout Option – Term Insurance Plan does not allow any financial crisis of any kind on your family or your loved ones in case of your untimely death. Apart from this, the premium you pay in your absence can be repaid by EMI or a lump sum amount called on the loan amount. Give to.

4. Benefits in Income Tax – You benefit from the tax deduction by taking a term plan. Apart from this, your family benefits in the lump sum amount. Are eligible for a deduction on the premiums paid in term insurance under section 80C of the Income Tax Act Sum Assured as a death benefit to the extent of text exemption under section 10D of the Income Tax Act.

5- Coverage for 5 Critical Illness: Anytime in life due to any significant illness, all your savings get spent on the treatment of illness so you can’t sustain your life even option like add on the rider in Sharm se lal In this, you can take assistance for treatment in case of illness from the amount covered by your policy.

Conclusion

A term insurance plan is nothing less than a boon to your family members amid the instability of life after you leave Sir Buy the plan, today we have given complete information about term insurance plan through this article, hope you have liked all the information given by us, for any other kind of information related to it, you can comment by going to our comment section. Can ask.

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