Term Life Insurance Online

Everything has changed since the Covid-19 pandemic. It impacted every individual who has low income that survives their family as single handed. Not only less fortunate people had, but it also impacted numerous lives around the world regarding financial needs and priorities. However, as the pandemic gave way to a new normal, everyone realized the importance of Protection.

Many individuals have also understood how essential it is to have financial support to deal with any unfortunate incident. So, if there is anything that is needed badly in this situation, it is none other than the term insurance product. Out of the various insurance plans available, the term insurance plan was one of the most optimal insurance plans for comprehensive coverage.

Case Scenario:

There were two friends named Surya and Mahesh are business partners. Surya has decided to take a term insurance policy for himself as he is the single wage earner in the family while Mahesh is the sole bread producer of the family who doesn’t believe in the concept of insurance investments. So Mahesh’s amount invested in purchasing a house or land to save his future.

Both of them have a considerable number of properties. Which are considered Noncash Assets? It is important to note here that there are certain expenses which are incurred every month by both of them.

One bad day Surya and Mahesh met with a disaster and died with injuries. Surya’s family contacted the insurance company for the death proceedings and was able to get the claim amount within a month while the family of Mahesh was left to safeguard for themselves as there was no income after the demise of Mahesh.

Types of Term Life Insurance

The coverages under the term life insurance plans can be enlarged by selecting for the Return of Premium, Level term plan, Add-ons or Riders such as Critical Illness, Waiver of premium, Accidental Disability rider. Extra coverage contains with extra premium to be paid by the customer under the term life insurance policy.

• Return of Premium Term Insurance:  Return of premium term life insurance plan covers death benefit and survival benefit both in a term insurance policy. The premium paid by the policyholder for live coverage and the remaining amount for the investment to repay the premium amount at the end of the policy period. In the policy period, the demise of the policyholder happens the sum assured amount is given to the nominee.
• Increasing Term Insurance Plan: The increasing term life insurance is one of the term insurance policies that sum assured increases with the completion of each year. The sum assured value of the second year is greater than the first year; the premium of the policy is constant throughout the policy period. The higher the percentage, the higher would be the premium to be paid under the increasing term insurance policy.
• Decreasing Term Insurance Plan: This plan works as the sum assured under the policy would be decreasing with each passing year. The percentage under this policy decreased every year until the policy payout or the end of the coverage period. This policy premium remains constant throughout the policy term.
• Level Term Insurance Plan: This policies sum assured remains constant throughout the policy period and the death of the policyholder happens the premium amount paid to the nominee. Level term life insurance doesn’t have the choice of increasing the sum assured as and when required, it is requested to people opt for less than 10 years. For term plans with more than 10 years, the policy term the level term insurance plan has higher premiums and the sum assured under the plan would remain constant.
• Critical Illness Term Plan: If any disease or illness reduces the chances of living and the treatment for which is lengthy. Most of the term life insurance policies cover a certain number of illnesses under the Critical illness add-on on payment of extra premium.
• Waiver of Premium Plan: In case of accidental disability or diagnosis with critical illness the future premium payable under the term life insurance policy would be waived off by the insurance company under the Waiver of Premium rider.
• Accidental Disability Plan: It covers the claim in case of death or disability of the policyholder. In case of death of the policyholder due to an accident, the base sum assured of Rs.1 crore term life insurance and the Rider sum assured of Rs.50 Lacs would be paid to the nominee of the policyholder.

Who Should Buy Term Life Insurance?

Term insurance can be purchased by any age group of people between 18 years to 99 years. But it is advisable to get it at 30 to 40 years for risk coverages. If you buy a term insurance policy at an older age will have higher premiums due to high-risk coverages. A term insurance plan will help the family to meet their day-to-day expenses the long-term financial goals. The below list determines who should buy a term life insurance policy:

• Parents
• Newly Married
• Children
• Teenagers
• Senior Citizens
• Family.

Benefits of Term Life Insurance