Term Insurance
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What is a Term insurance policy?
What is a Term Wheeler insurance policy?
Term insurance is a life insurance product, which offers financial coverage to the policyholder for a specific ‘term’ or a time period. A term life insurance policy can offer a substantial cover
In case of death of the insured individual during the policy term, the death benefit is paid by the insurer to the nominee. However, in the event that the tenure of the policy comes to an end within the lifetime of the policyholder, then the latter does not get any money back.
Usually, the policy term of term insurance can range over a long period such as ten years or twenty years or thirty years. The premium for a term insurance policy can be paid on a monthly, quarterly, half yearly or yearly basis.
One should know the importance of term insurance key features and why you should opt for it before buying a term policy
The purpose of taking term insurance is to provide life cover to the policyholder and financial security to his family. Therefore, if an individual covered by term insurance passes away, then the dependents of the individual need not compromise on their financial aspirations. The death benefit offered by a term insurance plan can be used for a variety of purposes such as managing living expenses, paying for higher education etc.
Therefore, it is imperative that a term life insurance plan should be a part of an individual’s financial portfolio. One can either buy a term plan online or offline.
Why should you buy a Term insurance online from MyonelifeX
Term insurance is a simple product and is easy to understand. Here are reasons to buy term insurance:
Low premium and attractively large cover
The coverage offered by a term insurance policy can be substantial and the premium for such a cover would be quite affordable. Thus such a product should be at the foundation of one’s financial portfolio as it offers excellent protection
Riders
A term insurance policy can be equipped with multiple riders. These riders are quite useful and can augment a term insurance policy by offering enhanced protection. Some of these riders include accelerated death benefit rider, accidental death benefit, critical illness rider, waiver of premium rider etc. Including these riders may bump your premium slightly but the value that you would get out of them could be tremendous.
Financial dependents are protected
The primary purpose of a term plan is to protect the financial dependents of the policy holder in the case of the latter’s unfortunate demise. The death benefit offered by a term life insurance policy can be substantial and enable financial dependents to manage livelihood related expenses as well as achieve their financial goals. Therefore a term insurance policy would offer tremendous peace of mind to the policyholder as the well-being of the financial dependents would be taken care off even in the former’s absence.
Financial dependents are protected
The primary purpose of a term plan is to protect the financial dependents of the policy holder in the case of the latter’s unfortunate demise. The death benefit offered by a term life insurance policy can be substantial and enable financial dependents to manage livelihood related expenses as well as achieve their financial goals. Therefore a term insurance policy would offer tremendous peace of mind to the policyholder as the well-being of the financial dependents would be taken care off even in the former’s absence.
Who Should Buy Term Insurance Plan?
Term insurance can be purchase by individuals across segments.
Young working professionals
Most individuals prefer to purchase term insurance after getting married or later in their career. However, those who have just started working will benefit immensely from purchasing term insurance. Financial dependents of such individuals are likely to be parents or siblings. There are multiple advantages of purchasing term insurance at such an early stage in one’s career.
Recently married couples
Recently married couples can begin their journey of creating a robust financial portfolio by purchasing term insurance policies. Both the spouses may have financial dependents and may also wish to take advantages of the benefits of purchasing term insurance policies as early as possible. Later on, when a child is born, the child can either be the sole or joint beneficiary of the term insurance policy.
Those who are about to retire or retired individuals
It might not seem appropriate to purchase a term insurance plan during one’s sunset years as one’s responsibilities are most likely to be fulfilled. However, one may still have financial dependents - for example - a non-working spouse or child. One may also wish to leave behind a substantial inheritance for one’s children or grandchildren. In such cases, one can plan to purchase a term insurance policy.
What Are The Benefits Of MyonelifeX Term Insurance Plan ?
Here are some benefits of purchasing a term insurance policy
- High protection at low premiums
Life insurance policies are accessible to the masses since they provide a large cover at relatively low premiums. The earlier in life you purchase term insurance, the lower the premium.
- Due to unfortunate circumstance, the policyholder may be incapacitated due to an accident or the diagnosis of a critical illness. This would impact the income earning capability of the policyholder. In such cases, the policyholder’s family may find it difficult to manage expenses. To protect oneself against such scenarios, one can consider augmenting the term insurance plan with multiple add-ons or riders. Examples of some of these add-ons include critical illness coverage, accidental disability rider etc. A critical illness cover would provide a lump sum amount which is equivalent to the death benefit if the policyholder is diagnosed with any of the covered critical illnesses. The accidental disability rider will ensure that the policyholder gets paid a regular monthly income which would be a certain percentage of the sum assured for a specified period.
The death of the breadwinner of the family is not only distressing, but it also brings about financial liabilities. Life insurance ensures that daily expenses do not suffer as a result of the insurer’s death. The pay-out resulting from the insurance policy can be received in the form of a lump sum or in the form of instalments to enable the family to cope with their living expenses.
How To Choose The Right Term Insurance Plan?
Choose from a wide range of add-ons when buying MyonelifeX two wheeler insurance plan online.
Purchase term life insurance plans early
You might want to consider purchasing an insurance policy earlier rather than later because the age at which you purchase the policy plays the determining role in the insurance premium. The same policy might incur a higher premium if purchased later in life. Purchasing the same insurance policy might attract higher premiums or might be rejected in case of lifestyle conditions developed later in life. Purchasing term plans early in life empowers you with the freedom of choosing from a greater number of insurance products. You could log into the website of your loan provider and compare a variety of term plans onlineto find a product that best suits your requirements.
Make a thorough assessment of your needs
If the insured in question is the sole breadwinner of the family, the insured should assess how much money is required to ensure that the family can cope with their living expenses and maintain their standard of living even in the absence of the policyholder. To arrive at a figure, he should consider the family’s living expenses and the rate of inflation to arrive at an approximate figure. However, this procedure by itself is not enough to determine your insurance needs. How much insurance one requires varies on a case to case basis. For instance, a person who has incurred liabilities might consider opting for higher coverage to ensure that the family is not distressed while repaying the loan. A thorough assessment of your goals, assets, and liabilities can help in shortlisting the right term insurance plan for your needs.
How Long Should Be The Term Of Your Term Plan?
The tenure of your term plan is as important as the amount of premium you pay. The longer the period of term insurance policy, greater will be the policy’s annual premium. If you keep the period too short, there are chances that you would be without a cover in a period when your loved ones will still need financial protection. Therefore, it makes sense to consider important factors like the tenure of your term plan when you are buying a term plan in India.
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