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Plan Your Future Well with Term Insurance

IndianMoney.com Research Team | Updated On Wednesday, July 24,2019, 10:43 AM

4.9 / 5 based on 32 User Reviews

Plan Your Future Well with Term Insurance

 

 

The future is uncertain. But, you can protect your family financially, against risk. This is where a term life plan helps. The insurer pays the death benefit to the nominees, if the policyholder dies within the term of the plan. This plan has no survival benefits.

If the policyholder dies young, there might not be wealth to transfer to the family. If you avail term life insurance, there would be wealth transfer at a young age on an untoward demise.

Want to know more on Term Insurance? We at IndianMoney.com will make it easy for you. Just give us a missed call on 022 6181 6111 to explore our unique Free Advisory Service. IndianMoney.com is not a seller of any financial products. We only provide FREE financial advice/education to ensure that you are not misguided while buying any kind of financial products.

Plan Your Future Well with Term Insurance
The Concept of Term Insurance

Let’s consider an example to understand term insurance. Gaurav is the breadwinner of the family and also takes care of his parents. He saves 50% of his salary each month. His salary is Rs 50,000 a month and he saves around Rs 15,000 a month.

Unfortunately, Gaurav died of a massive heart attack. Who will look after his family? With a term insurance policy, the financial future of your family is secure. If you have not availed term life plan, make sure to do so. They are cheaper compared to endowment life insurance policies. Ideally, your insurance portfolio should have a personalized term policy.

See Also: Best Age to Buy a Term Insurance Plan

Which Type of Term Insurance Should I Buy?

  • If you are looking for a term life plan, look at affordable premiums with excellent features. These policies offer your family death benefit on an early demise. Make sure the sum assured is at least 15-20 times yearly income.
  • If you travel frequently, go for an accidental death benefit rider offered along with a term life policy. The rider offers additional sum assured on death in road accidents. If the policyholder dies in an accident, his/her beneficial nominee gets a massive financial benefit.
  • If your family has a history of critical illness, go for a critical illness rider with term insurance policy. This rider covers pre and post-hospitalization expenses, in case you have been diagnozed with a critical illness. It is taken to cover diseases like cancer, paralysis, heart attack, stroke, kidney failure and so on.
  • Opt for income benefit rider. When you choose this rider, the beneficial nominee not only gets the fixed sum assured but also gets a supplementary income each year for a period of around 5-10 years.
  • You could also opt for decreasing term insurance policy, which is a type of term insurance. This plan is suitable for people who are nearing retirement.
  • Go for an increasing term insurance policy. With this plan, the sum assured increases every year at a set percentage. The plan is very effective against inflation and assists in meeting financial goals. You enjoy tax benefits with term insurance up to Rs 1.5 lakhs a year under Section 80C.

See Also: Why Buy Term Insurance for Your Family?

Tips to Choose the Right Term Insurance Policy

  • Choose an online platform and compare term insurance policies, wisely. Consult IndianMoney.com wealth doctors to pick the best term life plan.
  • Online term insurance policies are cheaper vis-à-vis offline term insurance policies.
  • Choose the cover carefully for yourself and your loved ones, be it your spouse, parents and children.
  • Check creditworthiness of the insurer by looking at claim settlement ratio.
  • Finally, read the policy terms carefully.

See Also: Tips Before Buying Online Term Insurance Plan

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IndianMoney.com Research Team

The research team at IndianMoney.com comprises of certified and experienced professionals who share the company's vision to make every Indian financially literate by equipping every Indian with right and unbiased advice. IndianMoney.com research team provides newsletters, articles, videos and FAQs on various financial products and concepts only to help you make wise financial decisions.

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