World Health Organisation officially observes 11 days and 2 weeks as global public health days, which are awareness campaigns meant to spark conversations and inspire positive change in how you secure your and your family’s future. Now, this is where a term plan steps into the picture.
A term insurance policy assists you in keeping your family’s future safe and secure in case of unforeseen events. It is also known as a pure protection insurance plan and offers some additional benefits. Let’s review the basics of a term plan to find out what they are.
Why Choose Term Insurance?
A term plan offers coverage for a fixed tenure. This can be either 10 years, 20 years, or even more. A significant benefit that you get by opting for term plans is their remarkably affordable premiums. It allows you to gain financial security at budget-friendly prices. Here are some of the benefits of a term plan to explore:
- Flexibility
Term plans have tangible coverage terms. Their duration and premium payment options can be tailored according to your future goals. Moreover, you can select a premium payment frequency that suits your budget.
- Tax Benefits
Several cases exempt the death benefit from term insurance as per the Income Tax Act. This means that in case of the policyholder’s unfortunate demise, the beneficiaries will receive the full amount tax-free.
- Different Types of Term Plans
A term plan has several types that you can pick from basis your current financial position. Here are some of the options:
- Standard Term Plan
The standard term insurance plan is a basic plan that pays out only the assured death benefit. The beneficiaries receive it in case of an untimely demise within the policy’s tenure.
- Whole Life Term Plans
A whole life term plan provides coverage till 99 years of age. It also builds up a cash value over time, which you can access if you need it.
- Increasing Term Plan
An increasing term plan is an insurance where the death benefit increases over time. It can help your loved ones keep up with inflation and ensure that your beneficiaries are adequately covered.
- Joint Life Term Insurance
This plan is for two people, such as spouses or business partners. The other holder receives the death benefit.
Tips to Find the Best Term Insurance Plan
Understanding what might impact your choice of purchasing an insurance plan is essential. Here are a few tips that make understanding them easier:
- Compare Plans
Once you know your requirements, compare different term plans. Reputable insurance companies offer online comparison tools to help you find the best plan.
- Understand Policy Terms
You must read the policy terms before finalising a term insurance plan to familiarise yourself with the terms and conditions. You must also focus on exclusions, limitations, and premium-paying schedules is equally important.
- Claim Settlement Ratio (CSR)
The percentage of claims settled by an insurance company is what you must look for in an insurer. A higher claim settlement ratio ascertains that your beneficiaries get the payout hassle-free.
- Riders
Consider combining riders to your basic plan for additional benefits. Some of the common riders include critical illness riders, accidental death benefit riders and waiver of premium riders.
Buy Your Term Insurance Policy Today!
The term plans are also an investment. The profits are meant to provide for you and your family in the future. Since you know all you need to know, you can now consider Canara HSBC Life Insurance, one of the most prominent insurers, where you can buy to meet your requirements.
It provides the best, most flexible policy and exposure funds via its term insurance policy. It also offers a range of online calculators to assist you. Don’t miss the chance to purchase Canara HSBC Life Insurance to get a good and low-cost online term plan that doesn’t demand investment of your savings!
