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Term Insurance in 5 Minutes

IndianMoney.com Research Team | Posted On Friday, July 12,2019, 05:57 PM

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Term Insurance in 5 Minutes

 

 

Term Life insurance is one of the most popular life insurance plans in India. It is easy to understand and avail term life plans. Term Life insurance offers financial protection to the dependent family members, if the policyholder expires within the term of the plan.

Ensuring the financial safety of your family is extremely important in your absence. Term life insurance offers maximum cover at minimum premiums.

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Term Insurance in 5 Minutes​

Riders in Term Insurance

Accidental Death Benefit Rider: This rider offers an additional sum assured, if the policyholder expires in an accident. The additional sum assured varies from one insurer to another and is computed on the basis of the original sum assured. The premium for an accidental death benefit remains unchanged across the policy tenure. This rider is suitable for people who travel frequently, as nominees get an additional amount if the policyholder dies in an accident.

Accelerated Death Benefit Rider: When you avail an accelerated death benefit rider, you receive cash advances against death benefits on diagnosis of a terminal illness. The money would be used for medical treatment and other expenses.

See Also: Term Insurance For Indians

Critical Illness Benefit Rider: A critical illness benefit rider is an optional add-on feature, which is availed to compliment a life insurance policy. Policyholders get a lump sum on detection of a pre-specified critical illness as mentioned in the policy terms. The major critical illnesses covered under this rider are cancer, stroke, heart attack, kidney failure major organ transplants and so on.

Waiver of Premium Rider: The waiver of premium rider keeps your term insurance policy active, even though you are unable to pay premiums in the future. People with pre-existing diseases are not entitled to get policy benefits. A majority of waiver of premium riders entail a waiting period. During the waiting period, there is no accrual of benefits from waiver of premium rider.

Income Benefit Rider: When you add an income benefit rider to term insurance policy, the dependents get additional income for 5-10 years in addition to the regular sum assured. Choose the rider wisely while availing term insurance.

Only avail riders which you really need. Otherwise, you end up paying extra in premiums, which is a loss of money.

See Also: Marriage and Term Insurance: Things to Know

Key Features of Term Life Insurance:

  • Term insurance policies offer coverage for a certain time period. They have no survival benefit.
  • Term insurance plans have no investment or savings components, but they offer risk cover benefits. They are not an ideal choice for someone who is looking to build wealth. However, they remain the most important among all life insurance plans. This is because they offer high cover at affordable premiums which is what you badly need.
  • Like other life insurance plans, even term insurance policyholders are entitled to tax benefits under Section 80C of the IT Act up to Rs 1.5 lakhs a year.

See Also: How Much Term Insurance Should I Buy?

Steps to Buy Term Insurance Online:

  • Log on to the insurer’s website
  • Choose the desired sum assured
  • Choose the term of the policy and the premium paying term.
  • Select the bank to pay the premium.
  • Complete the proposal form.
  • Take the medical test if required.

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