Best protection cover at minimum price: Term plan
Online Term Insurance is a life insurance product that offers financial coverage to the policyholder for a specific time period. In case the insured person meets an unfortunate incidence in life, the death benefits are given to the beneficiary, which in most cases are the family members.
Considering the uncertainty of life, that runs at every single minute, people who have a family depending on them need to buy a protection plan for their financial support. Online Term Insurance is the best protection plan offered by insurance companies offering maximum coverage at lower premium rates. A simple risk covering plan, it mitigates the financial burden on a family in case of loss of life of the breadwinner. In term plan, the insured is covered by an insurer for a specified amount for an agreed number of years during which the insured pays a certain fixed amount as a premium to the insurance company.
If during this period, there is a loss of life, the amount covered is paid to the beneficiary as nominated by him or her. Term plans vary from policy to policy and from individual-to-individual. It can be purchase as from 1 to 35 years.
The coverage amount is the important parameter for term plan. Most of the middle-class people who don’t have sufficient financial resource want their family to be fully secured financially if anything happens to them. The definition of financially fully secured should cover certain aspects. These are immediate fund needs, debts in hand, inflation costs, spouse income, child’s education expense, etc. Therefore, people should opt for at least 8 to 10 times of their current annual income. It ensures that the family gets a good coverage for a fair amount of time. A term plan exactly meets your requirements.
The premium and cost of the policy are major influences when it comes to buying a life insurance in India. But a online term insurance plan cannot be decided just based on the cost and premium factor. While cost and premium is an important factor for buying any kind of insurance policy, the claims settlement track record of the insurance company also plays a pivotal role in deciding the same. After all, a life insurance policy just doesn’t value, if, for any reason, the insurer does not fulfill the claim in the event of an unfortunate death.
Initially, the insurance was a costly affair. Till some years back a term plan cover of Rs 1 crore from the big companies used to cost Rs 20,000 annually. People avoided such costly insurance plan because it didn’t give any return and they couldn't find any sense in paying such hefty amounts with no returns. Now the online term plans have changed the insurance market dynamics. You can easily get an online term plan of Rs 1 crore cover, at a mere premium of just Rs 7000.
Because of the affordable rate of online term insurance, more and more people have started buying adequate insurance cover for their family. Indeed, the slashed premium amount has become a critical factor in the selection of the best term insurance plan.
Lastly, look for companies that give suitable riders with your term insurance plans. Also, ensure that you get some sort of choice for choosing the riders as they give you added benefit. Some insurance riders such as accidental death benefit rider, critical illness premium waiver rider, and terminal illness rider prove very useful for the policyholders.
One of the best features of a term plan is its affordability. Unlike any other life insurance product, a term plan is possibly the cheapest and gives you the maximum coverage. Term policy holder enjoys income tax benefits under u/s 80C & u/s 10(10D) of the Income Tax Act. One should go for a term insurance plan as soon as one starts earning. Younger people get lesser premiums and better deals.
