Term Insurance
This means term plans only offer life insurance and do not include any savings or investment component. So, if the policyholder passes away during the policy term, their nominee receives the sum assured under the plan. However, if the policyholder survives the policy term, no payouts are made in case of a regular term plan.
Return of premiums paid at the end of the policy term in case of term plans with Return of Premium (ROP) option
Most affordable kind of life insurance
Tax benefits on the premiums paid, subject to provisions of the Income Tax Act, 1961
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What Is Term Insurance?
Term insurance is a type of life insurance in which the life insurance company provides a predetermined amount to the beneficiary in case of an unexpected death of the policyholder. Term insurance is also known as a pure protection plan. It offers a budget-friendly plan that offers more coverage at an affordable premium.
For example, a healthy, non-smoker 24-year-old male can get INR 1 crore cover for his dependents for the next 25 years. If he buys a term insurance plan, he can get term insurance of 1 Crore for less than INR 600. This shows that it is the most economical option as compared to other life insurance plans.
What is the Right Age to Purchase a
Term Insurance Policy ?
It is always preferred to purchase your life insurance policy when you are young and healthy. This is because your mortality risk is lower when you are younger. As a result, life insurance companies charge a lower premium for young policyholders who have no health issues. That said, here is a closer look at the implications of buying a life insurance policy in different age
In Your 20s
Your life insurance premiums tend to be the lowest when you are in your 20s. However, at this age, most people do not think of buying a life cover because they may not have many financial responsibilities.
In Your 30s
Your life insurance premium in your 30s may be a bit higher. But people generally turn their attention to buying a life cover in this age group, because this is when they may decide to get married and have children.
In Your 40s
Your life insurance premiums will witness a sharp rise at this stage, since the mortality risk rises significantly. But if you dont have a life insurance plan by the time you reach your 40s, it is preferable to consider getting a life cover, as you may have a family that depends on you and it becomes essential to cover your debts and other potential expenses, as well as plan for retirement.
In Your 50s
Buying life insurance in your 50s may not be the best financial course of action. By this age, you may have developed some health issues, which will drive your life insurance premiums further upward. However, it still makes sense to opt for a life insurance cover at this age, as not many insurers will provide a life insurance beyond 60years of age.
Important Term Insurance Term
You Should Know
POLICY HOLDER
The policyholder is the person who purchases and owns the life insurance policy. Only the policyholder can make changes to the contract of insurance, as per the terms and conditions of the policy.
FREE LOOK PERIOD
The free look period is a window of time during which the policyholders are free to return the life insurance plan for cancellation if they are not satisfied with the terms and conditions of the policy.
POLICY TENURE
The policy tenure or the policy term is the period over which the life insurance coverage offered by a policy is valid. The life insured’s death is covered by the policy only if it occurs during the policy tenure.
NOMINEE
The policyholder is the person who purchases and owns the life insurance policy. Only the policyholder can make changes to the contract of insurance, as per the terms and conditions of the policy.
SUM ASSURED
The sum assured is the minimum amount guaranteed by a life insurance plan in case the life assured passes away during the policy term.
LIFE ASSURED
The life assured or the life insured is the person whose life is covered by the life insurance policy. This life assured may or may not be the same as the policyholder.
DEATH BENEFIT
The death benefit is the sum that life insurance companies pay the nominee in case of the life assured’s demise during the policy term as per terms & conditions of the policy.
MATURITY BENEFIT
The maturity benefit is the amount that the life insurance provider pays the policyholder at the time of policy maturity.
PREMIUM
The life insurance premium is an amount levied by life insurance companies in return for the life cover provided to the insured person. This premium can be paid as a one-time amount or as periodic payments on a monthly, quarterly, semi-annual or annual basis.
LIFE INSURANCE RIDER
A life insurance rider is an additional cover that offers financial coverage for specific incidents or expenses. You can purchase life insurance riders for an additional rider premium or charge at the time of purchasing your base life insurance plan.
How Does a Term Plan Work?
You can opt to receive the benefits under term insurance in the form of regular monthly income, along with lumpsum payment basis the variant opted.
A lumpsum amount is payable to your family in case of death of the policy holder under the chosen term insurance plan.
Riders can be added to the base term insurance plan for improved benefits in case of accidental death, disability, or critical illnesses at an affordable price.
Exclusion
You cannot raise any claims for the following standard exclusions under health plans.
If an accident is the death cause and it occurred under the influence of alcohol, death benefits cannot be claimed.
If the death is due to suicide, you cannot claim for death benefits.
Self-inflicted injuries, substance abuse or participation in any life-threatening stunts causing any temporary or permanent disabilities are not considered for compensation.
Disclaimer: For a complete list of exclusions about family mediclaim insurance, please refer to policy T&C.
Features Of A Term Insurance Policy
Term insurance is that form of life insurance that is most easy to understand. There are several advantageous features of a term plan that you should know before buying one.
Cover Against Life-Threatening Diseases
Cancer, heart attack, renal failure are some curable diseases that can be life-threatening. Don’t let money concern you on the way to the cure from these diseases. Critical illness cover is available with term insurance plans on payment of additional premium.
Death Benefit as Regular Income
Modern term insurance plans allow you to give your dependents a regular income along with the lumpsum benefit in the event of your unfortunate demise.
Premiums Returned on Survival
You can now receive all your money back if you survive the term insurance tenure. Term insurance plans with the return of premium benefit offer to return all the paid premiums on the policy as survival benefit.
High Coverage at Lower Cost
Term life insurance, which is the simplest kind of life cover, offers high coverage at affordable premiums. This benefit can be useful for people who wish to primarily secure the financial future of their loved ones. It can also be beneficial for individuals who already have a life insurance plan, but wish to increase their coverage at affordable premiums
Benefits Of Buying A Term Insurance
Policy
Financial protection of family against uncertainties
Safety for dependants from loans and debts
Stay covered till 85 years of age
Financial cover for critical illnesses
How to Buy Best Health Insurance Plans from BIMAFINSERV ?
Buying health insurance can be easy if you approach the right channel. Having said this, Bimafinserv.com can be a good platform for choosing the right insurance policy. Bimafinserv Insurance Broker Private Limited has made the process of comparing & buying a health insurance policy easier in comparison to earlier days. A person has easy access to complete details of almost all health insurance plans available in the Indian insurance market at a competitive price.
Bimafinserv.com helps you to compare numerous health insurance plans and zero down on the plan that best fulfills your needs. Moreover, the post-sale services are extended to the customers online as well even at the time of medical insurance claim.
