Hello friends In this post of today we will give you information on Term Insurance Plan and how it works.
Friends, life and death are the two aspects of the same coin, death is the truth of life, which comes to every person.
As a result, man has to work on his own and his family’s future plans.
So that after his death his family should not face any financial difficulties.
Because of this, insurance companies have made a number of plans which can help their family financially after death.
Term insurance is also one of these plans.
Well there are many companies in the market who sell insurance and every one of their insurance plans has their own specialty.
Choosing the right insurance policy as per your needs is a difficult task and this work becomes more difficult when you call everyday insurance companies, who claim that their insurance plans are the best.
You should take any insurance plan only if you feel that it will be the best according to your needs. So let’s know, What is Term Insurance.
What is Term Insurance and How does it works
Term Insurance is an insurance that is considered to be the best and the pure of all beams.
In this, you get a high price cover in very little premium which is a form of getting more of less at a lower cost.
Term insurance is for a limited period and such a policy is taken fully in terms of security.
Example – Many insurance companies offer this insurance plan to 18 to 60 years of age, many 18 to 65 or 70 years. You have to take insurance policy in the middle of this period.
In Term Insurance, a fixed sum insured is given to the nominee or family member after the death of the insured and if policy holder survives the term of policy, then nothing is paid.
The purpose is to secure your family only.
According to the terms and conditions given by the insurance companies, it has to be paid for a certain period and if for some reason the amount of payment is not credited, then the insurance becomes nil or zero.
Benefits of Term Insurance
- If Policy Holder dies during the policy period, the full amount of cover is given to Nominee.
- The premiums paid under this are tax free.
- It provides financial security at your lowest cost for your family.
- You can leave this policy at any time by ceasing the premium.
- You can also add items such as Accidental Cover, Disability Benefit, etc. but it depends on the insuring company.
Documents required for Term Insurance
- PAN Card.
- Recent Passport Sized Photographs.
- Proof of Income.
- Proof of Identity.
- Proof of Age.
- Proof of Address.
Limits of Term Insurance
- If you take a policy at a higher age then the premium of insurance increases.
- You can not take insurance after 65 or 70 years (depending on the insurance company).
- It does not work to increase or save your money.
- No surrender benefits or loans are available under these policies.
Purpose of Term Insurance
- Financial assistance to his family after the death of the family head.
- To become a source of income.
- Protecting the needs of the family.
Take Care of these things before taking Term Insurance
- How good is the insurance company?
- How much cover is required for you.
- Compare the terms and conditions of individual insurance companies.
- Be sure to check the CSR (Claim Settlement Ratio).
- If you smoke, your premium will be higher.
- If you forget to pay a premium then you can not renew your policy.
We think that now you guys may have understood better now – What is Term Insurance Plan and How Does It Work