What is term insurance plans?

Knowledge resource 1474 views 13 replies

Introduction
Term Insurance plans are the purest insurance plans available in the market. There are different types of insurance plans in the market like Term Insurance, Endowment Insurance, ULIP, etc. Every type has its unique features. it is good to select the suitable insurance plans to protect your life and family. This article presents the key facts about the term insurance plans.

Term Insurance Plans

The following are the key facts about the term insurance plans.
Term insurance plans are the purest form of insurance plans. It will cover the pure risk of your dying.
In the event of your death, your nominees will receive the assured amount.
You will not get any benefit, if you survive the policy term. As already said, the purpose of this policy is to protect your family from your death.
The premium for term insurance policy is very low compare to other insurance policies. For example a 30 year old person takes 20 years policy for the sum assured of Rs.500000. His premium will be just Rs.1500 per year.
Premiums are payable every year.
Generally maximum entry age of this policy is 50 years.
Importance of taking Term Insurance
In our country there is very little knowledge on the term insurance and its benefits. Another reason why people not shown interest is, they have the wrong assumption of seeing insurance as the investment and looking for the decent returns at the end of tenure.
If that is the case, one should not think about taking the insurance. There are lot other products available in the market to earn good returns. But, when you are no more, who will support your family or give the needed financial support. Taking term insurance is like sacrificing some money to save your family if you are not in this world any more.
Anytime did you think that when you are taking the car insurance, did you get the returns at the end of year?. But, you are benefited when you met accident. Even we are protecting our vehicle by taking insurance, why not save our family by taking the term insurance?. If you are the only earning member in the family, first thing you have to take the term insurance with maximum coverage. Spread this awareness to your friends.

Don’t confuse with health insurance and term insurance. Health insurance pays you when you have illness on you and your family. Term insurance pays your family when you are died.

Summary
It is the purest form of insurance cover for your family. If you are thinking about protecting your family from your death and not looking for any returns, it is the suitable policy for you. Hope this article helped you to understand the importance of term insurance policy.

Replies (13)
Thanks..i was really lukin for dis info..

thnx for the useful info provided....

Good. But in india people want something in return for the money paid by them. Also insurance agents will get very low commission for term insurance. Thats why term insurance policy is not very popular

Thanks for the useful info...........

@ V Chandrasekaran- Absolutely Sir in india people want something in return thats the reason the insurance companies  and agents increseing profits of her own by giving wrong information to the customers.

 

https://www.tflguide.com/2010/03/lic-wealth-plus-aapki-ya-aapke-agent-ki.html read this article by Financial Planner Hemant  

VERY GOOD INFO BRO

THANKS FOR SHARING

Hey Rahul,


You’ve explained the entire concept of term insurance in a very simple manner. Thank you.

Every individual is concerned about keeping their family safe at least financially in their absence. Term insurance ensures your family comfortably meets all their needs.  Bharti Axa Like has a great term plan - Bharti AXA Life eProtect. This plan is well suited for individuals like you as not only does it provides you Life Insurance Cover at affordable premiums with just a click of a mouse but also has built in features like Family Care Benefit. With this benefit, in case of death after 2 policy years, a sum of 1 lakh is paid out within 48 hours to take care of immediate expenses that may arise out of an unfortunate eventuality.
 

Thanks for sharing information! It would help me a lot since I was planning to insure myself with term life insurance. Previously, I had some doubt regarding the same. By reading your articles all my doubts about various insurances are clear and I can move ahead with my plans without any fear in mind.

 

In these times of high inflation, Rs 20 won't buy you much. But it is enough to buy Gopal Gidwani a term insurancecover of Rs 49.99 lakh. The 38-year-old Pune-based professional pays an annual premium of Rs 7,652 for the Anytime online term plan from IndiaFirst Life Insurance he bought two months ago.

 

Thanks for such a great post for term isnurance.

Thanks for great post for term insurance.

Nice post. I really like  this information. For term insurance plans Aegon Religare is best option.

Hey Rahul, without doubt term plans are better than all tyeps of life insurance plans in India, and that's why it is higher is demand. Term insurance guide which created above is very informatic. Can you write here something about TROP??, so that users/ reader can understand the another side of term insurance policy. Thanks in advance!
 


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