Thursday, March 30, 2023

Term Insurance

Term insurance means life insurance. Life insurance as the name suggests is insurance that insures life or which gives assurance that our and ours family’s life is secured financially. Term insurance is a type of life insurance that gives us financial assurance after payment of a very less amount of monthly premium and the policyholder gets a huge amount of sum of money as the policy matures and suppose, in case the beneficiary dies the nominee gets that amount of money. So Best term insurance plans are insurance coverage that gives financial protection as well as mental peace to the beneficiary. For example, a person can purchase a Best term insurance plan of rupees one crore for payment of rupees five hundred monthly. So every person can go for Best Term insurance Plans very easily.

Why should we go for the best Term Insurance Plans?

Term insurance plans or life insurance is very important for each and every person in today’s life to secure the future of the policyholder financially and also the future of his family and loved ones.

Nowadays many private and government companies are coming with different insurance plans which are providing insurance of a large amount of money to the beneficiary after a particular period of time with a very less monthly premium.

Long Term Goals: Best Term insurance plans not only insure the future of the beneficiary but also the future of his family. It is helpful to achieve long-term goals. Suppose unfortunately the beneficiary of the policy dies his family member or whosoever is the nominee made by him he gets the sum of money which beneficiary has taken the policy of. Not only this his children’s future is also secured like suppose in (beneficiary) his old age his policy matures and he gets a good amount of money.  

Money Utilization: That money can be utilized for his children’s higher studies in good universities or he can also purchase a house or a good property from that money or keep that money protected for his old age.

For example, Ravi is married and also has a child and he has taken the best term insurance plans of rupees one crore, and the policy is applicable till the age of 60. If unfortunately, he dies before this age his family will be paid Rupees one crore. By this, his family is secured even after his death, and suppose he remains ok he will get the amount of that money after the policy matures.

So the people who had not taken the best term insurance plan till now should go through market research and get the best insurance plan for themselves and their families.

Which best Term Insurance plans should I take?

That’s the question that arises in our mind.No worries. The Internet is there today to find the answer to this question or you can also take the advice of the insurance agents. They can tell you about the best term insurance plans available in the market.

There are many best term insurance plans in India that are launched by the Indian government as well as private companies. Nowadays everything is online so the benefit of this is that by sitting at home you can get the best term insurance plan. You can go through the best online policy term plan in India. So below is the table mentioned through which we can get an idea of which insurance plan offers what benefits to the policyholder

The Best Term Insurance Plans

Name of Term Plan AgeMinimum:18Maximum 60 Term of Policy Premium payments
LIC Term Insurance 18/60 Years 10-35 years Annual
Max Life Term Plan 18/55 Years 5-30 years Annual
Tata AIA 18/70 Years 5-40 years Annual /Semi-annual
PNB Met Life 18/65 years 10-40 years Monthly /Half-yearly/ yearly
Bajaj Alliance 18/60 years 10-40 years Monthly/Annual
HDFC Life protect plus 18/65 years 10-40 years Monthly/ Annual

Advantages of Term Insurance Plan

The main advantages of term insurance plans are:

  1. Financial Security: Best Term Insurance plans are the best way to keep the future security of the policyholder as well as his family. He doesn’t have to depend on anyone at his old age. He can live with pride and honor in the future. If we have money we have respect and the best term insurance plan is the best way to make a huge amount of money at a very low cost. So we should get the best term insurance plan to get our future secured.
  2. Minimum Premium: Another advantage of the Best Term Insurance Plan is the low rate of premiums. The low rate of premiums is an added advantage that even a middle class or lower middle class can pay that premium and get his life insured. There are many term life insurance companies in India so you can go for the best term insurance which you feel is the best.
  3. Greater Returns: The best thing which we can get through these best term insurance policies is higher returns. Best Term insurance plans give so higher returns that sometimes a man cannot earn this in his whole life for example one can get a huge sum of rupees one crore when the policy is matured. So this not only gives joy but also a secured future.
  4. Payment options are flexible: Another advantage of best Term insurance is the flexible payment options. The Companies offering the best Term insurance plans give their customers the flexibility of payment. You can pay monthly, half-yearly, or even annually. This reduces the pressure on the policyholders. You can also pay online without going anywhere.
  5. Plan choice: The policyholder has a choice to choose a plan. He can choose either single or a joint life plan depending on his need. He can either choose it for himself or a family member who is dependent on him for example his wife or parents.
  6. Benefits in Tax: Another advantage of a Term life insurance plan is that the policyholder gets tax benefits on the premium paid by him. 
  7. The best product in Insurance: Nowadays there are so many products in insurance for example health insurance, vehicle insurance, life insurance, etc. But term insurance is the best product of insurance among all insurance plans. Term insurance provides assurance and security for the whole life.

More Resources: Health Insurance Plans | Car Insurance Policy |Types of Deaths Covered in Term Insurance

Factors Affecting the Premiums of Term Insurance Plans

There are some factors that affect the payment of premiums of best term insurance plans means in some cases insurance policyholder has to pay the additional premium. These factors are;

  • Age of the Insurance policyholder or the beneficiary

The age of the beneficiary plays an important role in the payments of premiums. The young people are benefited to pay less premium as compared to older people. This is because old people are at higher risk of health-related issues as compared to younger people. That is why people are advised to take term insurance plans at a younger age.

  • Gender of the applicant

The applicant’s gender also plays an important role as females had an advantage of paying fewer premiums as compared to males because females are usually said to have a longer life span as compared to males.

  • Smoking and drinking habits

Smoking and drinking habits affect the health of the beneficiary. So the insurer also enquires about the lifestyle habits during providing a term insurance plan because smoking and drinking habits are linked to many health problems. It can increase health complications.

  • Health

If your history of a long illness in the past. You are suffering from any health-related problems currently like high blood pressure, diabetes. Then this may also affect the premium. If you are fit and healthy you can pay a lower premium as compared to unhealthy people.

Documents required for Term Life Insurance Plans

The documents which are required to purchase a best term insurance plan are:

  • PAN Card
  • Proof of address: Proof of address like  passport, adhaar card, voter ID card, driving license, ration card, or bank account statement
  • Proof of your age: Documents like birth certificate, passport, PAN Card, etc
  • Proof of Income: Proof of income with the documents like Income tax returns and salary slips.
  • Recent passport size photos

Eligibility to get Term Insurance Plans in India

  1. The minimum age criteria to get the best term insurance plan in India for a beneficiary is eighteen years.
  2. The maximum age criteria of getting a term life insurance plan depending on the minimum tenure of the policy. Sometimes the insurer is asked to go through a medical test before taking policy but it is not compulsory.
  3. Another eligibility factor is a sum assured as most of the policies have a fixed minimum sum assured.

Conditions for Rejection of Term insurance Plan

In some cases, insurance companies refuse to make payments in certain cases. These cases are

  1. Suicide: In case the insurer commits suicide his dependents or nominees are not eligible to get policy money.
  2. Death due to natural calamities or terrorism: If the policyholder dies due to natural calamities or war. His dependents are not eligible to get the insurance money.
  3. Death due to narcotics or alcohol: If the beneficiary dies due to overconsumption of alcohol or any other narcotics. The insurance company is not liable to pay the insured money to the dependents of the policyholder for years.

The process of claiming a Term Life Insurance Policy

In case the beneficiary of the term life insurance policy dies. His dependents can claim to insurance companies to get the amount of money they are eligible to get. The money claiming process from the term life insurance is very simple and easy. Some of the points for claiming the term  life policy claims are as mentioned below:

  1. Contact the Insurer or the Insurance Company: The first step you have to take is to contact an insurer or the insurance company and inform them about the death of the beneficiary. The nominee or the dependents of the beneficiary can contact the insurer or insurance company through email, phone call, or either by visiting the company’s branch.
  2. Documents required to submit to the Company: After you have informed the insurer about the claim. You have to submit necessary documents to the company like Insurance policy documents, proof of claim, death certificate of the dead person, medical reports, etc. 
  3. Settlement of claim and payment of claimed money: After the submission of all required documents to the term life insurance company. The Company checks and verifies all documents and then sanctions the claim that is the policy money if it finds everything is ok and genuine and can reject the claim if the documents of the policy are not satisfactory.

Purchasing Insurance Policy Online

Nowadays everything is very simple because of the internet. We can do all payments online. We can check the best online term plan in India online and can buy any term life insurance policy online in seconds. We don’t need to go to the company’s branch and wait till long to buy the best term insurance plans. 

Neither do we have to take the help of an insurance broker who charges extra money to provide you any insurance cover. Here are some steps by which you can easily check and buy the best online term plan in India in few minutes.

  1. Firstly just log on to the insurer’s website: There are many online portals today. Click on the tab of term insurance plans. Read all term insurance plans. Select the best term life insurance plan you like according to your convenience. 
  2. Read the New Term Insurance Plans in India: There are new and updated term insurance plans in India in 2021 started or updated by many term life insurance companies in India. You can compare all plans read all rules and regulations, terms and conditions carefully, and select the best term insurance plan according to your choice.
  3. Selection of Term Insurance Plans: After you have selected the term insurance plans of your choice. You are required to provide necessary information like the sum assured you want to take. The term and period you want the policy and the premium payments which you want to give.
    Once you are satisfied with which term life insurance policy you are willing to take. You can make a payment through your bank online.
  4. Acknowledgment: After making the payment you will receive an acknowledgment slip through mail or phone about your transaction
  5. Acceptance of Application: The term life insurance company will respond within three weeks of your application to let you know whether your application is accepted or not.
  6. Final Step: Finally once your application is accepted the life insurance company will send you policy documents through mail and later send you the hard copy of the policy documents to your address.

Points to be noted about Term Insurance Plans

  1. Economical: A term insurance policy is the most economical way to secure your future and also providing financial security to your family members or dependents. Many insurance companies offer insurance plans at very low monthly premiums. But you have to keep in mind what cover they are providing. They are providing insurance cover which is convenient to you.
  2. Choosing the Tenure of Insurance: The term life insurance companies give you the choice to choose the tenure of the policy. You can choose the tenure according to your financial condition. This is a very good feature offered by insurance companies.

Term Insurance Plans – FAQs

Q1.What are the extra benefits of a long term care insurance plan?
Ans. There are many services provided under long-term care insurance plans like living assisted facilities adult care, nursing homes, and many others. They also provide meal services, transportation services, and many others services.

Q2.Tenure of Long term care insurance policy.
Ans. Long-term care insurance policy can be either short-term or long-term. You can choose according to your convenience. Short-term insurance care services are suitable for people recovering from any illness or a sudden injury. Long-term care insurance is associated with long-term duration or a long period of time. This insurance is suitable for people who have a severe illness.

Q3.Why should we go for Term life insurance?
Ans. Term life Insurance is the best way to secure your future as well as the future of your dependents. The best benefits of these insurance plans are that they are designed for each and every group of society like the middle class, upper-middle-class, and even for the lower middle class. 

You can get an insurance plan of rupees one crore at a nominal premium of rupees 499 monthly. You also have the choice to pay a premium quarterly, half-yearly, or yearly. Long-term insurance plans will give you higher returns at your age which will help you to be self-dependent and live your old age with self-respect. You can also use that money to buy a property or for the higher education of your children

Q4.What is the right age to take term life insurance plans?
Ans. A long-term insurance policy should be purchased at the age of 55 to 64 years because an individual needs long-term insurance cover when he gets older.

Q4.Can the claims be rejected?
Ans. Yes claims can be rejected if they come under the exclusions given in the terms and conditions of the policy.

More Resources:Term Insurance Plans With OPD Procedure |Best Term Insurance Plans For 70ys old

Marketvein Staff
Marketvein Staff
Born libra, likes to lead from the front. Digital Marketing & Technology is his strength. He has pursued engineering. Travelling to new places & writing is his idea of fun. In his free time (if he gets some that is), he is seen donning the chef's hat at home.
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