Term Insurance: After the untimely death of the policyholder, the insurance company pays the entire sum assured to the nominee. The nominee can live a happy life in future by investing this money properly.
New Delhi: On the death of the insured under the term insurance or term plan , the nominee gets a lump sum amount. Apart from this, there is no other major benefit from this insurance. Actually, after taking term insurance, you are less worried about your family. Along with this, the nominee also gets full financial security.
After the untimely death of the policyholder, the insurance company pays the entire sum assured to the nominee. The nominee can live a happy life in future by investing this money properly. Under a term plan, you can get more life cover by paying less premium. At present, there are many term insurance plans available. In such a situation, if you are planning to buy a term plan, then before buying it, you should definitely pay attention to some of its features, so that you can get maximum benefit.
Eight to ten times of the income should always be kept in mind while taking term insurance. Always cover eight to ten times the insurance income, so that your family’s lifestyle remains as it is today, in case something untoward happens to you in the future. Apart from this, taking insurance is very important even if you have taken a home loan. Actually, repaying the home loan money in your absence can become a big problem for your family, hence it is very important to take term insurance. At present, many companies are providing base cover as well as extra cover.
Family gets protection
Maximum life cover can be achieved by paying less premium in term insurance. A term plan is a type of life insurance policy. In this, coverage is available at a fixed payout rate for a limited period. Apart from this, the amount gets to the nominee on the death of the policyholder. There is a provision of protection for the family in case of death in any way. However, the policyholder does not get any benefit on survival after the policy is over.
Get benefit of tax exemption
Generally, premiums are lowest in term plans as compared to other life insurance products. The maturity benefit is not available at the end of the term. The amount is received only after the death of the policyholder. It is considered best to buy a term plan at the age of 18. The premium gets higher with age.
Therefore, buying a term plan in time is considered the best move. You can take a term plan for 10-35 years. However, the policy limit is fixed according to the age and buying a term plan at an older age may lead to higher premiums. At present, many companies have kept the maximum age of entry in term insurance plans at 65 years. Companies can ask senior citizens for a pre-medical test before buying a term insurance policy. Experts say that while buying term insurance, one should not hide any of your medical conditions.
