What is term life insurance?
The real meaning of term insurance is that if something happens to you in the future and you die, you have to make provision for it from now on so that your family does not suffer in any way. There is nothing wrong with saying that term insurance is a concern for your family. In this article we can understand all about What is term life insurance and benefits of term life insurance.
What is term life insurance – Term insurance is a part of insurance. If there is only one earner in a family and the rest of the people have responsibilities on their shoulders, then in such a situation, if the main person dies, the whole family is destroyed. Term insurance is very important to protect the family from such situations. If the person has taken out his term insurance, his family gets support.
What is term life insurance – Term insurance is protection provided by the insurance company against death for a fixed period. E.g. If a person has taken a term insurance plan of Rs. 1 crore for 60 years, and the person dies within 60 years, then the insurance company pays 1 crore to his family or the authorized nominee.
Secondly, if the person has lived for 60 years or more, the insured does not get any amount from the insurance company.
Benefits of Term Insurance-
- High life cover at an affordable price
Term insurance policy is for everyone, which means that even a low-income person can take a policy plan that fits his budget.
Term insurance policies provide high life cover for an affordable premium amount. The sooner you buy a term plan, the lower your premium cost will be.
- Long-term safety-
In term insurance, a person can decide how many years of term insurance he wants to take.
Term insurance plans provide long-term protection for you and your family at all stages of your life You can opt for full life cover till the age of 100 years.
- Financial stability
A term insurance plan secures your family’s future by providing financial stability even in your absence. With a term plan, your family’s financial security is ensured.
- Tax benefits
You can get tax benefits on your insurance premium under section 80 (c). In addition, Life cover payout also gets tax benefits under section 10 (10D).
- Add-on benefits
Many term insurance plans offer a variety of add-on benefits and riders such as accidental cover, critical illness cover, etc., which you can add to the base plan as needed.
- Peace of mind
A term plan provides comprehensive protection to your family which helps you to live in peace without worrying about the future.
- Safety for the family
With Better Half Benefit or Child’s Future Protect Benefit, your Term Insurance Plan Edelweiss Tokyo Life Total Protect Plus can provide additional life cover for your spouse or your child.
- Covid-19 coverage
Edelweiss Tokyo Life Term Insurance Plans cover deaths due to ongoing coronavirus epidemics. This ensures the complete financial security of the family in such difficult times.
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How does the term plan work?
What is term life insurance – In term insurance, the policyholder is fixed premium India for a specified period. If the policyholder dies within the stipulated period, the policyholder receives the full policy amount from the insurance company so that the policyholder does not have to pay the total amount of the policy. However, if the policy expires but the insured is still alive, he will not receive any payment from the company.
Factors about term insurance policy-
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Age:
It is a popular belief that when a person is young, he is less at risk of any fatal disease. Therefore, when a person is less likely to have fatal diseases, they will never file a claim anytime soon and their premium amount will be less. However, when a person gets a little older, his premium amount will be higher
- Policy Term:
If the term of a term plan is longer, the total premium outflow will be higher as the period for which the premium has been paid is higher. However, if you opt for the long term, individual premium amounts are discounted.
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Profession:
If the policyholder is working in a high-risk environment for accidents like transport, mining oil, shipping, and many more, the term insurance premium will be higher than the jobs with a safe environment. This is because these people are increasing their risk factors by risking their lives.
- Policyholder’s medical history and pre-existing health conditions:
If the policyholder already has an illness or an illness like diabetes, or obesity, the insurance company will consider them high risk. For example, if policyholders are obese, they have high blood pressure and may suffer from cardiovascular diseases that can lead to stroke. Therefore, if the policyholder is living in any such situation, the premium amount to be paid by them will be higher than that of a physically healthy person.
- Medical History of the Family:
If the policyholder has a family history of any disease, their term insurance premium will be affected. For example, if the family of the policyholder has a history of diseases like heart-related, cancer, etc., then there is a high chance that the policyholder may also have this disease. That is, their chances of getting sick may also increase. Hence, the premium amount will be higher.
- Lifestyle:
If the policyholder has a family history of any disease, their term insurance premium will be affected. For example, if the family of the policyholder has a history of diseases like heart-related, cancer, etc., then there is a high chance that the policyholder may also have this disease. That is, their chances of getting sick may also increase. Hence, the premium amount will be higher.
When to buy term insurance?
It is best to buy term insurance at the age of 30. At this age, a person becomes a responsible adult. At the age of thirty, you are healthy, you have a good-paying job and your financial condition is also good. You are either planning to get married or you have recently started building a family. You are planning to buy or build a house.
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Features of Term Insurance
- Starting age – Minimum starting age is 18 years and the maximum starting age is 65 years
- Grace Period – 15 to 30 days depending on the type of policy
- Plan Types – It provides flexibility in terms of choosing the plan. You can choose the plan based on a single life or joint life.
- Payment of Premium Term – Single Pay or Limited Pay or Regular Pay
- Age to Maturity – 25 Years / 65 Years / 75 Years for Whole Life (Various as per the policy)
- Amount of premium – depending on the age of the applicant and the sum insured
- Policy Revival – within two years from the date of unpaid premium
- Nomination – Nomination facility available
- Frequency of premium payment – monthly or quarterly or half-yearly or annual payment
- Policy Coverage – Maturity and Death Benefit
- Sum Assured – Varies as per the different companies offered by different insurance companies
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