Life insurance is an insurance cover that provides a sum assured to the family of the assured in the event of sudden death. The plan also offers a survival benefit to the assured if he/she survives the policy term
What are the factors that affect the calculation of a life insurance plan premium?
Life insurance premium depends on numerous factors, including policyholder’s age, sum assured, gender, lifestyle, job, medical history, type of policy, tenure, and riders (if any).
Why should I purchase life insurance?
Life insurance helps you attain financial security that ensures your family’s life goals are not affected. Life insurance also offers tax benefits on the premiums that a policyholder pays for their life insurance. Moreover, life insurance plans are affordable, and the policyholder can purchase additional benefits by purchasing a rider to enhance their life coverage.
Which is the best life insurance plan?
Different life insurance plans have different features and advantages. Thus, the definition of the best plan varies from individual to individual. The best life insurance plan is the one that best meets your requirements and budget. However, among all the different types of life insurance plans, the most preferred type of life insurance plan is the term insurance plan because it provides high coverage at a nominal premium.
What are the factors which I should consider before buying a life insurance policy?
There are many factors that you should consider while purchasing a life insurance plan. These include your financial goals, income, existing liabilities, and daily expenses. After analysing all these factors, you can compare different types of life insurance plans, like term plans, whole life insurance, child plans, retirement plans, and others, to buy the one that suits your needs.
Why should I choose a term insurance plan?
Term insurance is the most affordable type of life insurance plan. These plans provide high insurance coverage at a nominal premium amount. Some term insurance plans also offer whole life cover benefits, with which you get life cover till 99 years of age. A term insurance plan helps you enjoy peace of mind and leave a financially stable future for your family in your absence.
What are the key features of a term insurance plan?
Following are the key features of a term insurance plan –
- Budget Friendliness
- Long-term life protection
- Availability of riders
- Easy to Purchase
- Availability of whole life protection
What are the different types of term insurance plans?
Term insurance plans come in 5 different types, namely level term plans, term insurance with return on premiums (TROP), increasing term plans, declining term plans, and convertible plans.
What are different types of payout available under term insurance plans?
Different term insurance payouts are lump sum, lump sum plus monthly income, and monthly income by way of monthly, quarterly, semi-yearly, and yearly instalments.
s suicide covered under term insurance ?
Generally, suicide is not covered under term insurance plans. In case the life assured commits suicide within 12 months of issuance of the policy, the nominee receives a minimum of 80% of the total premiums paid till the date of death after deduction of applicable taxes and charges.