Term plan is a Life Insurance policy that provides financial coverage for an individual’s death to his/her nominee. The financial benefit can be passed on as monthly benefit or a lumpsum payout based upon what the insurer has chosen at the time of policy purchase.
Benefits of Term Insurance Plan
In case of your absence
- Get a lumpsum money for your family
- Option to close down loans taken by insurer
- In case of accidental death, option of increased sum assurance.
- Option to support family in case of disability or critical illnesses.
There are 24 companies providing term plans. The premium of a term plan depends majorly on the beloe mnetioned criterias
- Your age
- Your salary
- Your gender
- Your smoking habits
While purchasing a term policy the most important aspects to know about the insurance company are –
- What is the claim ratio of the company
- How much lower the cost is relative to others
- What are other benefits provided within the plan
A Term Plan offers many benefits like
- Tax Benefits
- Choice of multiple options
- Age of Entry
- Survival and Death Benefits
- Option to choose additional riders