The basic advantage of term insurance is that the financial benefit the dependents get on the death of the insured.
what is term insurance?
Term life insurance knows as term assurance is a policy that offers risk coverage for a certain period at a fixed rate of premium payments.
If the life insured dies during the term, and the policy is active, or in force, the death benefit will be paid to the beneficiary.
Normally, the term plan is much less expensive compared to traditional policies like an endowment, money-bak, whole life or unit link insurance. Unlike most types of endowment insurance, term life insurance has no cash maturity value.
In India, the term plan only considered important for its investment and tax benefits and continues to be an often-overlooked protection product.
A term plan is a protection product that everyone must include in their investment kitty who has assets and dependents.
One must not ever forget the fact that no-one can avoid the unexpected tragedies of disease, death, life, and disability.
The basic advantage of a term plan is that the monetary benefit the dependents get on the death of the insured.
Death happens within the policy tenure is the only condition being. In case you’re the breadwinner of your family, term insurance becomes a must for you.
It’s the foremost trust-worthy way to make sure your family is secured and financially protected when you’re not available to take care of them.
It’s not just the natural death that’s covered under a term plan, term plans even cover death due to critical illness like COVID-19.
Secure your family
It’s not the first occasion when the whole world has witnessed a pandemic like a coronavirus. There are instances of Zika, H1N1 swine influenza, and Ebola outbreaks also.
No doubt, pandemic like that of coronavirus may be a better reminder to see if you’ve got secured your life with a term insurance plan with sufficient sum assured.
While many of us may believe that term insurance is expenditure instead of an investment, what they have to understand is that the inherent benefit such plans have in securing your family in your absence.
Many life insurance companies have even come up with dedicated term insurance plans that give the return of premium of end of the policy tenure.
These term plans provide a guaranteed payout at the maturity of the plan, regardless of the life status of the insured.
Such term plans are mentioned as the Return of Premium (RoP) plans. Aside from providing financial aid to your family in case of your premature death, term plans even provide you with adequate risk coverage during a Disease or Critical Illness.
There are term plan options that provide policyholders cash pay-outs on being diagnosed with major illnesses like heart attack, cancer, multiple organ failure, or brain stroke.
It’s likely that the expenditure of treatment can leave your rainy day savings dry. Thus purchasing a term insurance plan with critical illness riders is strongly advisable.
Many team plans from life insurance companies offer payment pay-out. Critical Illness Plan is often bought as a rider with the term insurance plan for comprehensive protection.
Another major advantage of the term plan is protection against disability. While many perceive that term insurance plans are one of the effective ways to create financial security against the possibility of losing a source of income because of untimely death.
Very few people are conscious of the very fact that term insurance plans are an excellent source of protecting the income of the life insured within the event of a disability.
A permanent disability rider along with a term insurance plan promises a monthly income for a lump sum or fixed tenure pay-out on the occurrence of any ‘permanent’ disability.
Within the case of total disability, the insured gets the complete sum assured, while in case of partial disability, the insured only gets the partial sum assured. Let’s first understand the different types of LIC plans:
Term Insurance by LIC – Life Insurance Corporation of India
‘Jeevan Amar’ (Plan No: 855)
This is one of the best term policies by LIC – Life Insurance Corporation of India. Jeevan Amar is a non-participating, non-linked, life term assurance plan.
LIC’s Jeevan Amar plan is available with the maximum age maturity at 80 years. The plan is available for the ages of 18-65. Jeevan Amar is offering policy terms from 10 years to a maximum of 40 years.
The plan provides lower premium rates for professional and working women with an accidental rider.
Take a look at ‘Jeevan Amar’ by LIC – Life Insurance Corporation of India
- Policy Term: 10 years to 40 years
- Age of Maturity: 80 years
- Sum Assured: Rs 20 lakhs to unlimited
- Age of Policyholder: 18-65 years
- Premium Paying Term: Single-Premium, Half-yearly or Yearly Premium