Term Insurance acts as a Financial Savior for the family. One needs it to secure their family against any mishap. Life Insurance acts as a support system if the bread earner of the family loses their life. As a responsible citizen, every adult must have Term plan for their dependent. That’s what Ritiwik learned from his father. He’s now 30 years old and already taken term Insurance for his family. He lost his dad at the very young age of 15. But his education and his sibling education never got affected even when his mother was not working. This was possible because his dad had a Term Insurance plan. After the demise of his dad, he respected him even more. He decided that as soon as he starts earning he will take a term plan.
Term Insurance plan offers many other benefits as well. Some of them are described belowFamily Security - Best security one can provide their family is by providing good Term Insurance Plan. Afer buying it you can help your family even after your demise.
Tax savings - Term Insurance can easily help in saving taxes. Section 80c of Income-tax can help us save the required amount. We can choose the amount that we would like to Insure. Based on the same premium is calculated. Tax can be saved as per the amount of premium.
- Rider Benefits - Along with Term, we can choose some riders. These are the additional benefits that we can get along with our plans.
Some of the riders are tabulated below:-
- Accidental disability benefits
- Terminal Illness
- Income Booster Benefits
- Accidental death
We can get supplement coverage with the help of these riders. We may just need to pay a nominal amount to avail the same. Most of the term Insurance plan got these riders.However, the amount may be based on kind of term plan and the type of rider that we have chosen. Accidental disability benefits cover all the expenses at the time of the accident on road or otherwise. Terminal illness covers any illness that can lead to the death of the person. Likewise different riders got different featured.
No Compromise on dreams
If we have term Insurance plans that we can ensure that our family able to achieve their dream without hassle.
Life after death
Death is an important event. However, even the close relations gets forgotten after some time. But if you care for your family you can be remembered even if you are not there.
How to choose a Term Insurance plan?
Most Important decision is how to select good Term Insurance plan. Within the term Insurance, there are lots of plans to choose from. Besides the company, there are other vital features that can help in selecting the policy as well. Some of them are premium amount, rider benefits etc
There may be many players in the market . And we may not be sure which one to choose. But thanks to the web aggregating sites . We can do quick comparison on these websites of all the features.
Some of the Term Insurance plans for reference are listed below.
- E-Term Plan
- Anmol Jeevan II
- Amulya Jeevan II
- Jeevan Suraksha Plan
- Mera Term Plan
- Premium Return Protection
- Super Term Plan
Plans mentioned above are just for reference. There are many other players as well. We can choose the ones that is most suitable.
Ritwik has happily secured his family with the help of these term plans. If you haven't still plan about it than its never too late. Just go for the plan that can meet all your needs and goals.
Premium amount can be easily calculated with the help of online calculators as well. They do the calculation after taking a few important parameters such as your age; Income and give you the details.
Some of the term insurance plans provides premium payment flexibility as well .We can choose to pay monthly, quarterly, Half-yearly or annual installment. All the amount get credited to the beneficiary account at the time of claim.
Factors affecting premium amount for Term Plan
The premium calculation can be done easily with the help of online premium calculators. Alternatively, we can download the app and do the calculations as well. As discussed above the amount of premium will be dependent upon a couple of factors as follows.
- Age of the person
- Total Sum Insured
- Rider benefits
- Chronic Illness
- Non-Smoker benefits
- Kind of Term Insurance Plan
- Term Insurance Compan
How age of the person affects Premium?
Age of the person plays important role in determining the amount of premium. A young person may have to pay a low amount of premium. This is because his probability of survival will be more. That is the reason its recommended to start investing in term plan as soon as possible.
What is the total Sum Insured?
Total Sum Insured is the amount beneficiary gets after the demise of the policyholder. We can plan that amount based on a couple of factors. Few such are how much premium are we willing to pay. Also how much amount you think is sufficient for your family. This decision should also be based on how much is our monthly salary and how much we can save. It's advisable to save 20% of our salary. After we buy the policy premium needs to be paid at regular intervals.
What is the Rider benefit?
By now we know what are the different riders available. These are the additional benefits along with term plans. Amount of premium is directly proportional to the kind of rider that we have chosen. If we take a rider of monthly Income booster than premium will be definitely higher than other plans. We can choose to add riders as per our financial goals and needs. Adding rider may prove to be quiet beneficial. As the return on investments that we get with the help of same is unparalleled. An additional premium that we have to pay for rider is nominal. However, before adding the same we must analyze the benefits that we will get after adding the same. We should choose it accordingly.
How can chronic Illness affect premium?
If someone is suffering from some chronic ailment than premium rate will be high. Example person with the problem of arthritis will have to pay more premium as compared to those who don't have any problem.
What are the Non-Smoker benefits?
A person who is a non-smoker will have to pay less premium as compared to the one who smokes. The reason is quite obvious. Smoker has less life expectancy. While calculating the premium we must keep in mind this factor as well.
Term Insurance plans can have different policies. Differentials are based on Sum Insured, inbuilt riders and other factors. Based on these features premium amount will vary. Before buying any plan we must check all the attributes carefully.Our decision for selection of the policy can be based on the same as well.
Term Insurance company impact premium
Last but not the least Term Insurance company also plays great role in determining the amount of premium. As different company will have different products and features so their premium amount will vary accordingly.
After understanding all factors above we can term Insurance policy with ease. As Ritwik learnt from his dad early and bought a plan for his family. Similarly, we must buy good Term Insurance plan as early as possible.