Life Insurance 101​

Author : einsured Admin

newcomers

The Ultimate Guide To Term Life Insurance

Today, life insurance is more than just traditional endowment insurance. Over the past decade, the expansion of the insurance industry has led many companies to offer a wide range of options and possibilities with multiple plan features. These can range from term life insurance to an insurance policy that promises your family’s refunds to retirement insurance with a regular income source.

So don’t let these options confuse you. We offer a simple and definitive guide to help you through the process of buying term life insurance.

What Is Term Life Insurance?

Term insurance is a pure life insurance product that is easy to buy. Term provides for the risk of death and promises to give a lump sum benefit at the end of its beneficiary if something happens to the insured for a certain period. In unforeseen circumstances, the insured’s family taken care of, and financial stability assured. However, if the insured lives for the insurance’s entire duration, no insurance benefits are paid out, except for the premium refund insurance, where the insured receives the full amount of the premiums paid.

Since term insurance does not involve investments, premiums can only cover expenses at the time of death. For this reason, term insurance premiums are less expensive than the various other life insurance options available on the market.

Society members gradually realize the need for life insurance. As life grows and uncertainty increases day by day, every family needs life insurance to cope with the loss of loved ones, at least financially. To meet this growing need for life insurance, providers offer plans that meet each individual’s different requirements. It can, therefore, be challenging to choose the right strategy in such a complex market. Term life insurance is the best product for the general public.

Term life insurance plans. Term life insurance plans are the simplest form of life insurance and pay a benefit in the event of the insured’s death during the term of the project. If you want to enjoy a secure retirement without worrying about your family’s future or your financial stability (even if you’re no longer there), term life insurance is a must.

Here are the top five benefits offered by term life insurance plans

Financial stability

It is the primary and apparent reason why people choose any insurance. The death of a breadwinner can disrupt the lives of other family members. In such a situation, it becomes tough to manage family expenses and provide for basic needs. On the other hand, term life insurance offers comprehensive coverage in death and makes life easier for other family members, even if it is financially challenging.

Ensuring the future

Every family member who earns a living has several responsibilities and obligations to their spouse, children and parents. Death can effectively prevent them from fulfilling these obligations. With term life insurance, you can plan your future accordingly. In the event of death, the insurance company can ensure that your children receive a good education and fund your marriage. Similarly, with adequate term insurance, your spouse and parents can lead a comfortable life without financial hardship.

Debt

Most of us have some credit. It can be a car loan, a housing loan, a personal loan, an education loan, etc. Insurance money uses to pay off loans and interest so that these debts’ burden does not fall on your family.

Broad coverage and low premiums

With no age-related benefits or other complications, term insurance plans offer a high protection level at premiums that most people can afford. When you buy life insurance online, premiums are even lower because there are no agents or intermediaries.

Riders

Most life insurance plans offer additional benefits, called riders, in addition to the death benefit of the insured. You can opt for riders such as Accidental Death Coverage, Critical Illness Coverage, Return of Premium, etc. for a small additional fee. These riders allow you to make the most of your life insurance without burning your wings.

The best way to find the right life insurance plan is to go online and check the different insurance companies’ options by entering the relevant information. Check out the life insurance plans offered by Canara HSBC Eastern Commercial Bank here.

Types Of Term Plans

There are several types of term plans. The main types of term plans are as follows

  • Term plans.
  • Increase or decrease in forwarding plans
  • Returnable Premium Plans
  • Monthly Income Plans


  • Term plan

    A forward plan is a basic plan. The insurer pays a guaranteed amount in the event of the death of the insured.

    Incremental or decremental plan

    The sum insured increases or decreases annually at a fixed rate.

    Monthly income plan

    Despite many term plans, a guarantee lump sum payment as a death benefit. However, in a monthly income plan, the insured amount is paid in monthly instalments.

    The most common endorsements and additional insureds

    You can increase or extend term insurance by adding term insurance riders such as

    Monthly income plan

    Some insurance policies provide for the named insured to receive a monthly income for several years. A small portion of the total sum insured may be the amount of income. This income may be higher than the total sum insured. Your monthly payment may be more than the sum insured.

    There is also a variety of additional income called growth income

    Accidental death or destruction

    An Accidental Death or Disability Rider provides additional coverage in the event of the insured’s death or disability due to an accident. It includes both temporary and permanent disabilities.

    Waiver of Premium

    Some term insurance plans offer a waiver of premium in exceptional circumstances such as terminal illness, disability or critical illness.

    How do I get a life insurance policy?

    Term plans purchased in two ways: online and offline.

    Term life insurance coverage purchased directly from the insurance company’s website or through an insurance aggregator. Purchasing through an insurance aggregator allows you to compare the features of several products so that you can make an informed choice based on your preferences.

    Offline, you can go to the nearest branch with KYC documents and fill out the application form to complete the purchase process. You can also purchase the policy with the assistance of an agent or broker.

    If you have dependents in your family, you must purchase emergency insurance to ensure your family members’ future. If a dependant dies, the insurance coverage you receive from the insurance company uses to meet your dependents’ needs. Term insurance is not only affordable; it also provides peace of mind for you and your dependents.

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