The term insurance is meant to protect the family and it also provides the whole life cover options. Many people die in a day due to various reasons such as accidents, drowning, diseases, infections etc. Yet many people are not creating an insurance policy because the cost of monthly premium is higher. So, people apply for term insurance plan with return and hence they can afford to pay premium amount. The term insurance is always considered the most affordable and simplest life insurance product. This insurance does not contain any investment component. After the death of the person, they immediately pay the amount to the insured. These premiums do not provide any survival benefits but are beneficial to the survivors of the deceased. So, the person can greatly benefit his family members.
Paying the term insurance
Initially, the policyholders should pay the lowest amount of premium and the amount of premium increases gradually with age. The policyholder should then pay a higher amount of premium, but cannot get the full amount assured as the tenure of the policy increases.
The term insurance with a return of premium
The policyholder can apply for several types of term plans. The term plan with return is a type of policy that ensures financial stability for the family. After the policyholder dies, then the family members need not depend upon other people. It is the best policy for the people who are highly concerned about their families. It acts a perfect protective layer to the policyholder. Two parties are involved in this process namely the insurer and insured. The person investing in term plans should pay a certain amount of premium to the insurer. So, the insurer provides the insured the financial protection to the family after death. The insurance cover that is provided by the insurer is also valid for the particular tenure. If the policy matures earlier, then the insured gets the whole benefits. The term of the policy ranges from 10 years to 30 years.
Benefits of term insurance
The term plan with return of premium provides several benefits to the users.It is one of the simplest options to provide benefits. It is often considered essential investment option. The person investing in the term insurance should pay certain premium charges to the insurer. The premium should be paid in small amount initially and later it should be paid in lump sum. They should pay the premium periodically as specified by the terms. It can be paid monthly, quarterly, half-yearly or even annually. The insurer gets a protective life cover. If the insured dies before the maturity of the policy, then the insurer should pay the entire amount of sum assured. The beneficiaries receive the death benefits so that the insured person is benefited. If the policyholder is surviving even after maturity of policy, the benefits are paid to the insurance provider.
Some of the special features of the term insurance plan
These policies can be easily purchased. The investor can easily invest online using the web-based services. They can easily approach the insurance agent to buy a term policy. So, they can visit any branch office to make premium payment.
The family members of the policyholders receive death benefits along with some added benefits known as add-on-raiders. They should pay additional charges to extend the tenure of the policy. The rider benefits include the waiver of premium, benefits for critical illness, disability benefits and some permanent expenses.
The term plan with return of premium offers some of the most affordable premiums whose charges are much lower to the other types of premiums. The cost is much lower for the term insurance scheme and the term plan offers the protective life cover and it also includes some death benefits.
These plans also offer some flexible plans to the users. The investors can make payment in various flexible options. Some of them prefer to pay advanced premium and such policyholders can opt for single premium plan. They can choose to pay premium every month or half-yearly or quarterly or annually depending upon the condition.
Some of the benefits that they can enjoy
They can enjoy the tax benefits for purchasing or renewing the premium policy. The amount paid as tax can be claimed as deduction. They can also deduct the premium amount according to section 80C. Hence the taxable amount becomes lesser and hence their tax liability is reduced. The death benefits that the survivors receive are also exempt from tax.
If also offers a high life cover at a lower cost and the premium amount is extremely affordable. The premium rates are also extremely lower compared to other types of insurances. So, the term plans are perfect for the investors who seek for a protective cover.
One of the best features of the policy is the sum assured. The policyholders can pay a large sum assured at a nominal cost to take care of their family and to recover the loss against inflation. So, they should pay some amount additionally every month rather than paying lump sum amount. For other policies, the policyholders should pay a large amount yearly, but this scheme is not affordable to anyone. A policyholder can easily pay monthly charges in smaller amount.
This premium is ideal for the youngsters because it offers them various flexible options. It is ideal for the investors who begin earning their income recently. Such policyholders should not delay in investing in essential life insurance policies.
The investors can easily renew the policy after the maturity date. Depending upon the terms of the policy, they can even renew the policy for few months. After renewing the policy, they enjoy the benefits till the end of the term.
They can also enhance the coverage and opt for accidental death benefit also or a permanent disability riders. So, they can reduce the burden of paying the whole policy for accidental deaths.
They also offer various variants to the policyholders to customize the plan