Term of Life Insurance Policy: A term life insurance policy is the simplest form of life insurance where you have to pay a premium for a period of time – basically between 10 and 30 years – during that time, if you die a death benefit is to be given to your family or beneficiary. Term of Life Insurance Policy provides high life cover at low premium rates. In this article we will share with you a brief information about Term of Life Insurance Policy.
What is Term of Life Insurance Policy?
Term insurance is one of to the simplest form of life insurance. Its one of the most sought after life insurance policies in India. It is a pure cover plan that provides protection for a fixed period of time. If the insured dies within that period, the nominee gets the pre-determined death benefit. Term Insurance Policy is comparatively cheaper than other types of life insurance policy.
Why Do You Need Term Insurance?
Here is the reason below why should you buy term of life insurance policy –
- To Protect Your Family:- Being a sole earning member of your family, you are responsible for their well being. Buying a term life insurance plan is important to ensure that you meet your family obligations even when you are not around.
- To Pay Off Your Loans:-If you have bought various assets like car, office or house through loans, this plan ensures that the weight of these loans will not cause any financial problems for your family after your death.
- In Case of uncertain Death:- In case of uncertain death of the policyholder, a death benefit is to be given to your family or beneficiary that can help your family pay for their regular expenses.
Term of Life Insurance Eligibility
You have to meet the following eligibility criteria in order to buy a term insurance plan in India –
- Applicant must be a permanent citizen of India.
- Applicant’s age limit must be between 18-65 years.
- The minimum tenure of this plan is 5 years.
- You have to undergo with a medical test.
- You must submit required documents to buy this plan
Benefits of Term of Life Insurance Policy
Here is some of the benefits mentioned below of term life insurance policy –
- Term of Life Insurance Policy provides high life cover at low premium rates.
- It is available both online and offline mode.
- IT offers long policy tenure up to 40 years.
- Anyone can apply for this plan like individual, couple, etc.
- You can pay the premium monthly, quarterly or annually.
- It provides death benefits to the beneficiary, in case of uncertain death of the policyholder.
Types of Term of Life Insurance Policy
There are different types of term life insurance policies which are mentioned below –
- Level premium: It is one of the simplest term life insurance policy wherein sum assured remains unchanged throughout the policy tenure.
- Term Return of Premium Plan (TROP): It is a term insurance plan that refunds the premium paid for the cover in case the insured survives during the policy period.
- Increasing Term Insurance Plan: This plan provides coverage against the risk from rising inflationary costs that may affect the actual value of the death benefit that the insured’s family will receive.
- Decreasing Term Insurance Plan: In this plan the sum assured of the policy decreases every year by a fixed percentage over the tenure of the policy.
How to Buy Term of Life Insurance Policy?
Here is the step buy step guide below to buy a Term of Life Insurance Policy in India –
- Visit the official website of the company from where you want to buy this plan.
- On the homepage, you will find all the insurance plan, choose one.
- Calculate your term coverage need way before you buy a term insurance plan.
- Now fill the term insurance application form and submit required documents.
- Now pay the premium and you will receive the acknowledge no to your email.