Term insurance is an insurance cover taken for a specific period of time. During this period, if the insured person dies, the sum assured is paid to the beneficiaries who are ideally family members in most cases. The sum assured is the amount of cover which the insured person wishes to choose at the time of buying the policy. The benefit under the plan is payable only if the insured person dies. If the insured person survives after the plan completion policy period, they will not receive any maturity benefits. Thus, these plans are called as pure protection plans.
Term insurance is the only type of plan which is designed solely for protection purposes. Since the death risk is covered, the plans present unique benefit of higher sum assured at lower cost premiums. When purchased online term plan is 30- to 40% cheaper compared to an offline purchase.
The maximum amount of sum assured under a term insurance is limitless. However, there has to be some practical figure based on your income source and risk appetite. Because if you’re unable to pay the premium costs in future, chances are your policy might be terminated. Term plan determines the corpus required to meet your family’s lifestyle, survival needs, and shape up the future of your kids. Therefore, you should choose the coverage amount very carefully. If you’re afraid of choosing a higher level of sum assured in the fear of unaffordable premium amount, relax! A term insurance is the cheapest form of insurance policy available in the market.
With internet era, you can buy term insurance from the comfort of your house or place of work. An online purchase is generally cheaper and offers the convenience of comparing different plans at the click of the a button on your computer, laptop or smartphones. Once you decide the cover amount, you can quickly find out which company is offering your desired cover, the premium costs incurred and plan benefits available on plan.
Once you decide the term insurance company you wish to buy your term insurance plan from, apply you need to download the forms, fill up the necessary details, and upload it with a scanned copy of documents. Within a day or two, the company representative will get in touch regarding the policy purchase.
While filling your online form you will have to enter personal details, nominee details, medical and any information on the pre-existing medical condition, habits like smoking, drinking, tobacco consumption, etc. Few statistics like height and weight might also be required to be filled in the form. The online site will guide you through the application process and will make sure you don’t miss on any required information which is required.
It is advisable to be true honest with the information you fill in the application form because if revealed later, chances are your family might receive shorter cover or policy gets terminated.
Experts say, while the lack of maturity benefit cannot be ignored, term plans are still important to the context provided. These plans prove to be the best financial protection for middle and upper-middle class section. It offers maximum financial security blanket at optimum costs.
Taking into consideration the rising inflation costs, better lifestyle expectancy in the absence of the earning member, a substantial corpus is required to meet such lifestyle expenses of the family. It can’t be built by a common middle-class individual and therefore, term plan helps you exactly fill up the shoe crunch. For people who are still unconvinced and want a return out of your term insurance plan, there is a solution for you too. The insurance firm has come up with a return of premium term plans which promise a maturity benefit. Happy, aren’t you? So, go ahead and buy the best financial security blanket at optimum premium costs.