Term Insurance is a special insurance product that provides insurance cover at a fixed rate of payment for a particular period. Financial Planner recommends that people should take this job as soon as they start their job, so that their family members can get financial support in case of any disaster. However, the person who receives term insurance does not get any benefit from the person himself while living. Probably this is the reason that term insurance premiums are much lower. Anyone can take a high cover policy with a minimum premium.
What is Term Insurance?
Term plan is the most pure form of insurance policy. The simplest way to get life insurance is term insurance. In this, the person taking the insurer pays the premium for a certain amount of time. If the insured dies during a fixed period, then Sum Assured or a lump sum is paid to his family or nominee. After giving a nominal premium every year in the term plan, you are provided cover for some specific years. Typically the term policy is taken for 10 years, 15 years, 20 years, 25 years and 30 years.
It is important to mention here that the premium paid for the term insurance plan comes under the purview of tax exemption under Section 80C of the Income Tax Act. People should prioritize term insurance before adding money for retirement. You must take special care of 5 things before buying Term Insurance.
How Much Cover do you Need?
This individual person depends on the amount of minimum life cover a person needs. But according to the Thumb rules, employers should take term insurance term of 10 times their annual income. Also, experts also recommend that people should continue to increase it with their rising income or take additional term insurance.
Premium of Term Insurance Plan?
Premium of Term Insurance Plan depends on three factors. Your age, the amount of coverage and the term. It is worth noting that you will have to pay a lower premium as soon as you take a term insurance policy. In addition, the amount of premium on the same age, term and life cover is different from the insurer. Therefore, before purchasing the policy, you can choose it only by comparing it online.
Ryder: It is also probable that the policy holder may become a victim of disability due to an accident or he may lose his hearing power. Taking the life cover in such a situation is not beneficial. You should also take a Ryder with Pure Life cover. There are additional benefits to meet with the Riders Life Insurance Policy, in which additional premium is to be paid. General riders, which provide insurance companies, are: Accidental Death Benefit Rider, Disability Rider, Weaver of Premium Rider, Income Benefit and Critical Illness etc. on Accidental Disability.
Types of Term Insurance?
With increasing age, the needs of insurance continue to decline and grow individually. Some insurance companies offer a policy that comes with increasing and decreasing sum assured.
Nomination: This term is the most important part of insurance. To ensure that after the death of the insured person, the benefit of the policy reaches the right person directly. You should also give the details of the nominee when buying an insurance policy. You must do this job.