This is the first part of series of articles that IndianMoney.com is going to publish on Insurance for its readers. Today we will discuss about Term Insurance Plan, its different types and advantages over other insurance plans.
Term life insurance is the simplest and least expensive type of insurance. It pays benefits only upon the policy holder's death. Age is very important factor in determining the premium of a term policy. For example; with Annual Renewable Term Insurance, the policy holder pays a low premium in the beginning, which increases annually as he or she gets older.
Term insurance typically suitable for younger people with children and limited funds who are not covered through an employer. This type of policy helps such a person's heirs to cover all the expenses such as mortgage and college costs, estate taxes, and funeral expenses on his or her death. It is a pure risk cover for a particular period of time. This means that the sum assured is payable only if the policyholder dies within the policy term. For example, if a person buys a policy of Rs. 2,00,000 for 15-years, his family is entitled to the money if he dies within that 15-year period. If he survives the 15-year period, he is not entitled to any payment; the insurance company keeps the whole premium paid during the 15-year period. So, these policies are not meant for savings or investment. It is a 100 per cent risk cover. It purely means that a person pays a certain premium to protect his family against his sudden death. He sacrifices the amount if he lives longer than the period of the policy. But it is a very effective way of covering your life with a cheaper premium.
There are different types of term insurance you can choose from. It can be classified into the following categories :
Following are the advantages that you can receive from a Term Insurance Policy :
The below given table provides you the comparison of some of the important term insurance products in India. IndianMoney.com provides you a good platform for knowing insurance in great details about products and their features in its insurance section.
inding the right term life insurance quote online for a policy that fits the needs of you and your family can be a very challenging task especially since you are probably tired of putting your trust in a company you have likely never heard of to take care of your family's financial future at the time of your death. Because so much is riding on your choice of a highly regarded and trustworthy insurance company, you need to thoroughly research each and every company and policy out there so you can find the best plan to keep your family secure in the future. This was a discouraging task a few years ago but now websites like www.indianmoney.com makes it possible to compare policies and making your research much quicker and more accurate.
Receiving an insurance quote through the web has really never been easier. If you have the capability to answer a couple of simple questions about your job, health and hobbies like base jumping or smoking, then you can get a few rate quotes in no time. When the rate quote website is happy with your responses, the website will analyze the data and display an instant quote right before your eyes.
Term life insurance provides you with the best life insurance value for your money. If there are people in your life that you genuinely care about, you really need to get yourself a Term Insurance as soon as possible because you never know what future is. Isn’t it?
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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