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Important Features of a Term Insurance Plan

  • 17th Jun 2019
  • 935
Important Features of a Term Insurance Plan

The only thing assured about life is its uncertainties. There is nothing you can do to fight that. However, there are ways you can safeguard your loved ones from the cruelties. For example, a term life insurance cover can be of great financial help for the family of the policyholder if he or she passes away untimely. The cover provides a sum assured to the nominees of the insured.

There are many great features of this insurance plan. Here are a few of the most important ones:

1. Affordable 

The term plan is a pure life insurance cover. If the policyholder dies before the tenure of the plan is over, the family of the insured receives a sum assured from the insurer. However, if the policyholder survives the term then no benefits are paid on the plan’s maturity. This is why this insurance policy is affordable. You can financially safeguard your family by paying cost-effective premiums. 

2. Easy to buy

Among all the best features of term insurance, this particular facility has made it a very popular insurance plan. Either you can find a trustworthy insurance agent who can take care of buying the cover for you or you can do it independently by using the Internet. Find the web portal of the insurance company you trust and apply for the insurance through their online form. Moreover, you can pay the premiums online. Overall, online term plans are cheaper compared to offline plans. 

3. Term plan with return of premiums

If you are worried about the no maturity benefit factor of the term plan then you can opt for the one that comes with the ‘return of premiums’ facility. The term plan with return of premiums is a variant of the insurance policy where, on the maturity of the plan, the insurer returns all the premiums paid by the policyholder. This insurance policy is slightly costlier but the added benefit makes up for it. 

4. Staggered claims payout option

If you are worried that the lump sum paid by the insurer will be too much to be handled by your family then the staggered claims payout option is one feature of the term plan that can put your fears to rest. If you opt for this option then only a portion of the cover will be paid to your family as a lump sum and the remaining money will be paid as yearly or monthly payouts.

5. Flexibility in paying premiums

The term plans offer a variety of options regarding paying your premiums. You can pay them yearly, quarterly, and monthly. The flexibility allows you to choose a premium payment option according to your comfort. 

6. Offers rebate

If you are a non-smoker then most of the insurance companies will offer you rebate on the premium. Some insurers do the same for women policyholders too.

Knowing these features of a term life insurance plan will help you make an informed decision when selecting the right policy for your family. Once you do that, you can lead a wholesome life, completely free of financial worries.

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