Term Plan Does a Lot More Than Just Insure Life
A term insurance plan is a life cover, which does not have maturity benefits but offers a death benefit. The plan will provide financial security to your loved ones in case of an unfortunate event. It has low premiums and offers a large cover. A term insurance plan is essential for every individual. The plan has various riders (add-ons), which will make them more useful for you in the long term. Here are different ways in which your term plan will do much more than insuring life.
Your nominees can get a monthly income
One of the biggest term insurance benefits is the option of paying out the sum assured in the form of monthly payments or a lump sum payment. The plan will also provide a monthly income over and above the sum assured. The monthly earning has an option to increase the income wherein the receivable amount rises by a fixed percentage at the end of each year. This could help to safeguard your dependents against inflation.
You can take a joint term insurance policy
If you want to save on the premium cost, it is advisable to invest in a joint policy, which covers you and your spouse. Both lives will be covered under one plan and you will have to pay a single premium for the same.
You can have several nominees
One of the most important term life insurance benefits is that you can have more than one nominee. You have the option of selecting one or more nominees for the sum assured and the benefits. It will allow you to allocate a varying amount to different individuals as per their needs.
Get a cover for accidental death and accidental disability
You will receive an additional sum over and above the basic amount insured by investing in term insurance with riders. The insured can also avail of an accidental disability rider, which covers any temporary or permanent disabilities. The rider will provide a cover to you over and above the basic insurance cover.
Cover critical illnesses
Under a critical illness cover, you will receive a lump sum in case of diagnosis of a critical illness. The plan covers specific critical illnesses. Therefore, you need to study the documents carefully before you buy a cover.
Have a terminal illness benefit
Some term plans offer a terminal illness benefit. If you are diagnosed with a terminal stage disease, the insurer will pay a part of the lump sum or the entire sum assured.
Get a premium waiver
Term plans have an option wherein they waive your premiums in case of a critical illness, terminal illness, or a disability. The policy will remain in force but you stop paying a premium for the same.
Get your premium back
Usually, term insurance plans do not have a maturity benefit, except the policies that offer a return of premium. In case you survive the term, you get the premium back. Therefore, this term insurance with money back plan has a low sum assured.
If you have not purchased any insurance plan yet, go online and look for options under the term plan. Invest in a plan that is suitable as per the requirements of your family.