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The A -Z of Term Insurance

IndianMoney.com Research Team | Updated On Thursday, August 22,2019, 05:49 PM

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The A -Z of Term Insurance

 

 

What is Term Insurance?

Term insurance is a type of life insurance policy; offered by the insurance companies to cover dependents on an untimely demise. The death benefit is only paid to the nominee of the policyholder, in case of death of the insured, within the term of the plan. Term life plan has no survival benefit.

Why it is Necessary to Buy a Term Insurance Plan?

A term insurance plan helps meet financial goals. The death benefit can be used to pay back loans and meet daily family expenses. The importance of the term insurance plan is realized in the absence of the primary breadwinner of the family.

Purchasing term insurance is of utmost importance for the sole breadwinner and people with dependents. Buy a term insurance plan and secure your family in these turbulent times.

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The A-Z of Term Insurance

Benefits of Term Insurance:

  • The nominee is entitled to a lump sum amount in the event of the death of the policyholder within the tenure.
  • Financially compensates your family so that your family can continue to live with pride even after the death of the sole earning member of the family.
  • A term insurance plan also takes care of your family in case of a critical illness or total or partial disability resulting from an accident if riders are availed.

See Also: Term Insurance For Indians

How to Buy Term Insurance Online?

Buying online term insurance is really simple. Most of the insurers offer a convenient interface and a streamlined process, which enables the users to easily avail term life plans online. Buying term insurance online from the insurer’s website involves the following steps:

  • Log on to the insurer’s official website and click on online term insurance.
  • Enter the sum assured.
  • Choose the policy tenure and your date of birth.
  • Enter your gender and click on the smoker/non-smoker box as applicable.
  • The page will display a premium amount based on your inputs.
  • Select the bank where you want to make premium payments.
  • Enter your valid mobile number and e-mail ID.
  • You will receive a notification on a successful transaction.
  • The insurance company will contact you within 3 weeks and confirm the approval of your policy.
  • In case of approval, you will first receive a soft copy of the insurance plan; post which a hard copy of the policy documents are mailed to your address.

See Also: Benefits of Buying Term Insurance Online

Types of Term Insurance Plans in India:

Standard Term Life Plan: This is the most basic type of term insurance plan. This type of term insurance is immensely popular among the masses; as it offers the option of annual premium payment and provides a lump sum in case of death of the insured within the tenure. These plans are very affordable and are easy on the pocket.

Term Insurance Return of Premium or TROP: This type of term insurance plan comes with a maturity benefit. The Term Insurance Return of Premium plan refunds the premium; in case the policyholder survives the policy tenure. These plans are increasing in popularity as the premiums are returned. However, these plans are offered at a slightly higher rate than the standard term life plan.

Group Term Insurance Plans: The group term plans are tailor-made to suit the insurance needs of corporate, societies, enterprises and firms. These plans are availed to provide term insurance to all the members of the group. The policy offers the same set of benefits to all the members and the policies are generally customized to suit the needs of the policy buyers. 

See Also: Why You Need A 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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