Everyone might know the word insurance, but most of the people don’t know what is term insurance? In this article, we are going to discuss a detailed overview of insurance
What is term insurance?
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Insurance is like a shield form of life, it offers consideration for a particular point of time, and within the term of the policy if insured died then death benefit will be payable to the nominee. Especially all these insurance plans are intended to protect insured family requirements in case of death of the insured. It offers a particular amount of conservation to a nominee for a particular point of time. Let’s discuss premium, plans and few important things of insurance policy.
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Premiums for insurance policies are very low while comparing with all other types of life insurances policies. Due to no investment and whole premium will be covered under the risk, the premiums will be low. So that death consideration is only given nominee when insured expires within the time period policy. If the policy time period expires, then there will no maturity benefit. But there are some plans, where they return back the premium amount even policyholder survives after the time period of the policy. The premiums in the term insurance plans will differ from one insurance company to another insurance company and when the time period of your insurance policy increases, then the premium will also be increased at the same ratio.
Eligibility criteria for term insurance policy:
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According to the insurers, the eligibility criteria will be varied for term insurance policy. Entry will be accepted from age of 18 years to maximum age of 65 years.
The insured will be having a convertible option in term insurance plan so that they can convert their plan into the endowment plan or whole life insurance policy at during time period of the policy without having any additional charges.
Factors that should be considered to choose the best term plan:
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- Know more about the insurance company where you take a term policy.
- How much coverage you need at the end of the policy.
- Verify twice about the claim settlement ratio before you sign for a policy.
- Better try to compare the terms and conditions of a few different insurance companies that you know.
- Check out the factors of inflation in getting coverage benefits and pay the premium amount.
- You can also take two insurance term policies from two various insurance companies so that you can be in a safe zone in case your claim is rejected by one of the insurance company.
- Don’t try to take a low term insurance plan even it might have some important element because they may have so many conditions will be attached at the time of claim.
- You can even try to have an offline or online term insurance plan.
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If insured forget or miss to pay the premium then the first that insured should do is know the current status of their term policy through their agent or insurance company. As per Life Insurance Company of India, 30 days of grace time period will be allowed when the payment mode of a premium is monthly or half yearly or yearly payment.
Surrender an insurance plan:
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Insured can surrender their insurance policy before the time of period maturity. Surrender charges will be deducted and the remaining amount will be given to insured. Surrender charges will differ from one policy to other. If insured surrender the policy after 5 years, then there will be no charges will be levied.