- About Coverfox
You might not feel the necessity to buy insurance, but what about your family? Can you say that your family won’t need it too? Buy term life insurance while you and your family lead a stress-free life.
We have different ways to plan for different days.
Term Life Insurance pays the beneficiary a lump sum amount during the policy term if any contingency happens. Such policies help you to secure your family future by opting for a higher sum insured at a relatively lower premium.
Let’s explain it this way:
A term life plan is an insurance with a death benefit that is availed only for a certain fixed number of years. So if you purchase a term life insurance plan of Rs. 1 crore for 20 years, and nominate your wife as a ‘beneficiary’, your wife will receive the sum assured amount [of Rs. 1 crore] in case something unfortunate happens. This term insurance plan will ensure that your family is well taken care in unfortunate circumstances.
Sounds promising, right?
But what about the fixed period clause?
Here’s the answer:
Like the name suggests, it’s a ‘Term life insurance’ plan, which means it covers you for a certain term. In the above example, you took a policy for 20 years. This means that the insurance coverage is valid for 20 years only, provided you are paying an annual premium. After 20 years, if you still intend to cover your family under a death benefit plan, you’d have to buy a new term life insurance policy. And no, you won’t be paid the sum assured or any benefit at the end of the term.
This is the reason why the premium for a term life insurance is much less than the premium for a regular life insurance plan.
Our friend Rahul had an untimely accidental death. He peacefully left the world, leaving behind his spouse, 2 beautiful kids and a few financial liabilities. But, one wise thing that he did was buying a term life insurance plan.
Let’s see the how the term plan coped up with Rahul’s family at this critical stage of life.
Family availed a lump-sum amount.
However, there are also certain riders available which take care of your family if you survive some injuries during the accident or had to fight a critical illness. If such was the case, your family would have received the below mentioned compensation from the term plan that you invest in:
Term life insurance is one of the most traditional forms of insurance. To understand how it functions, read the below mentioned steps:
The main motive of term plans is to provide life cover. Only on death of the policyholder, a nominee or beneficiary of the policy receives the sum assured.
The simple funda of term insurance plans is that they are pure protection plans. You pay the premium regularly as per the frequency chosen and your family gets the sum assured in case something happens to you.
There are different types of term insurance plans. Before you finalize on a particular term plan, analyze and understand your needs. If need be, get in touch with an online broking portal like Coverfox.com for their unbiased advice. Mentioned below are the different types of Term Life Insurance plans:
1. Standard Life Term Insurance Plan:
The most common and regular type of term plans in India is the standard life term insurance plan. Here, the life cover and the premiums that you opt for remains unchanged or constant throughout the entire tenure of the policy. The most common terms available are 10, 15, 20
2. Decreasing Term Insurance:
Decreasing Term Insurance cover is designed in such a way that the cover & premium decreases over the tenure of the policy. Such plans are usually designed for banks & financial institutes who cover the risk against mortgage or liabilities or home loans. Here, in case any eventuality happens, the term plan ensures that the bank or financial institute gets back the money.
3. Increasing Term Insurance:
This plan is exactly opposite than the decreasing term insurance. Here, as your age increases, the life cover too increases. Inflation plays an important role in everyone’s life. This plan is designed keeping inflation in mind. The fear of remaining underinsured would ease by opting for the increasing term insurance plan. Your life cover increases at a predetermined rate in this plan.
4. Return of Premium Term Insurance:
In this type of term insurance, the insurance company pays back the premium paid by you at the end of the policy period, only if you survive. For example, if you pay Rs.5, 000 p.a. for 25 years for a cover of Rs.50 lakhs, you would get an amount of Rs.1, 25,000 (exclusive of service tax) only if you survive the policy period. The drawback of such type of policies is that their premiums are quite higher than the normal term plans.
As we just saw, there are different types of term insurance plans with different terms and conditions, different features and sum assured costs. Choosing the right plan as per your requirement and budget is, however, a challenge. Keep the below points in mind before you finalize on a term life insurance plan.
ICICI Prudential’s iProtect Online Term Plan
So folks, what are you waiting for? When you don’t want to compromise with your loved ones, why leave the opportunity to remain financially stable? While you peacefully leave the world, let your loved ones live their lives peacefully with your memories. To get the most affordable, reliable, tailor-made quotes and top-notch after-sales services, you can simply visit www.coverfox.com and take a significant step towards the long-term financial planning for your future.