Term Insurance; Protect your family

 

A sort of life insurance called term insurance provides complete monetary protection against life's uncertainties. Your family will get the Sum Assured if you pass away unexpectedly within the policy term, depending on the term insurance plan you chose. The money your family members received when you no longer with family will help them deal with financial hardships.

You must be aware of and comprehend the definition of term insurance before you decide whether to get a term insurance policy. Knowing which plan will be available to you and your family is crucial in addition to this. As an illustration, the life cover of the term insurance policy you select should be adequate to cover your family's financial demands for normal costs, your children's schooling, and other commitments.

What characteristics does a term insurance policy have?

Given your understanding of term insurance, you should be familiar with its characteristics and advantages. The following are the main advantages and characteristics of term insurance:

• Protection from potential life occurrences

If you are the only provider for your family, a term insurance policy can protect your loved ones from financial loss in the tragic case of your passing. With the help of this policy, you can guarantee your family's financial security in the future. Under these term insurance policies, you can quickly obtain a sizeable life insurance policy for relatively low costs.

For instance, if you are a 25-year-old lady who does not smoke, you may purchase a term insurance plan with a life insurance benefit of Rs. 50 lakh and pay for the following 35 years; your premium will be about Rs. 3,599 each year (inclusive or excluding taxes). Additionally, you can view how your premium liability changes as you age using online term insurance rate calculators.

• Protect against critical illness

You might think that a major illness like cancer or kidney failure won't affect you when you're in your 20s or 30s. However, if this occurs, not only does your health decline, but you can also lose the hard-earned money you saved up to pay for the necessary medical care. Despite the fact that term insurance plans only provide death benefits and no additional benefits, you can increase the coverage by adding a critical illness rider.

As the name implies, a Critical Sickness Rider, when added to your term insurance, offers extra protection against financial loss to your family for medical expenses in the event of any illness covered by the rider. You are given a lump sum money to put away.

• Unintentional injury or death (accidental death or disability)

Accidents can occur at anytime, anyplace. You might require a sizeable sum, depending on how severe it is, to pay for your medical costs and lost income. Popular term insurance policies with riders for accidental death or disability assist you in handling circumstances like these.

A thorough Accident Benefit Rider is available with most of policies. By protecting you from unintentional death and dismemberment, this rider extends your family's financial security.

• Various payment options

You should choose Life's term insurance plans if you believe that your family members lack the skills required to manage a sizable sum of money and may find it challenging to use the lump sum payment they have received under your term insurance policy. There are many available payout possibilities for you to select from.

For instance, you could select a term insurance policy that provides your family with a quick lump sum payment and a set monthly payment upon your passing. In this way, your term insurance plan will provide a steady stream of cash for your family.

 

How can I purchase a term insurance policy?

You should thoroughly investigate the term insurance plan for you in addition to knowing what term insurance is and why getting a coverage is important. Online term insurance plans can be purchased quickly and easily. Only a few simple actions need to be followed.

The following are the step-by-step instructions for purchasing a term insurance policy:

(i)                 Consider Your Financial Needs

Understand your family's demands as well as your financial situation completely before choosing a term insurance policy. Any insurance policy you purchase should have enough life insurance coverage to fully support your family's requirements while you are away.

Start by compiling a list of all of your family's income sources, dependents, existing debts, and living costs. In addition, you should take into account the life objectives (life objectives) of your spouse and kids.

Choosing a sufficient financial protection in this way will enable your family to live comfortably even without your presence.

(ii)               Project the Cost of a Term Insurance Policy

Calculating the term insurance premium that you must pay for your term insurance policy comes after determining your financial demands. You may find a wide variety of term insurance plans online when you conduct a search. These include standard term insurance policies, term policies with survivor benefits (term policies where the premium is refunded), and term policies with different payout possibilities.

The cost of a term insurance policy relies on a number of variables, including the type of plan selected, the duration of the policy, the age and gender of the insured, and smoking habits. Using a term insurance premium calculator online is one way to see how the premium changes depending on these variables.

Depending on your age, the appropriate coverage amount for a term insurance policy should be between 15 and 25 times your yearly salary.

(iii)             Verify the insurer's CSR, or claim settlement ratio.

Checking the CSR of the insurance company you have chosen is crucial before choosing a term insurance policy. CSR is the proportion of claims resolved by the insurer to the total number of claims the insurer received over the course of a fiscal year. When the CSR is high, the insurance provider works hard to resolve the claim made by your nominee.

(iv)             Pick Riders for Additional Coverage

The term insurance policy can be modified with add-ons, also known as riders, based on your requirements and preferences. You can supplement your fundamental plan with term insurance riders to broaden your insurance coverage.

Online Term Insurance Premium Payment

By the time you get to this point, you will have all the knowledge necessary to choose wisely whether to purchase a term insurance policy. Online premium payment is the last item on this checklist.

You must be specific about your salary, occupation, present address, and lifestyle patterns before selecting an appropriate life insurance policy and riders. After that, you are taken to a page where you can pay the premium online using one of several different payment methods.

You can contact our customer service staff for more guidance, and we'll be pleased to assist you in finding the term insurance plan that best meets your needs.

Why is it necessary for you to have a medical exam when purchasing term insurance?

If you pass away suddenly, a term insurance policy provides financial security for your family. You might be required to take a few medical exams as part of purchasing a term insurance policy. While you might believe that these tests are unnecessary, they are actually necessary.

The danger of a claim being denied is decreased by having a medical exam if necessary when purchasing a term insurance plan. Your term insurance policy's premium could fluctuate based on the results of your medical exam.

Who ought to purchase term life insurance?

As soon as you begin to make money, you should ideally purchase a term insurance coverage. If your family depends on you financially, you absolutely need a term insurance coverage. The term plans are offered by Life insurance companies from age 18 or 65.