A term life insurance is a policy that provides insurance coverage to an individual for a particular term or period. It benefits the nominee financially only if the policy-holder expires during the policy’s specified term.
Read on to know the benefits of term life insurance, its features, documents required to buy term life insurance plans and the payout options you can avail.
There are 5 types of term life insurance policies, as detailed below:
Here are some of the features of term life insurance policies:
The primary benefits of a term life insurance policy are enumerated below:
Here is the list of documents that are generally required for term insurance policy applications:
Enumerated below are the eligibility criteria one must fulfil before applying for a term life insurance policy:
Given below are steps that one can follow to choose the best term life insurance policy:
Term insurance cover calculation depends on the following factors:
Generally, experts recommend that term life insurance coverage should be 15 to 20 times the annual income of the insured.
Here are the details of payout options associated with term life insurance policies:
Given below are factors that one should consider before buying a term life insurance policy:
People with other family members dependent on them should consider buying term life insurance policies. Here is a list of individuals who might find term life insurance policies suitable.
Here’s when you should opt for a term life insurance policy:
The reasons why one should buy a term life insurance policy are enumerated below:
There are multiple term life insurance policies that one can choose from to secure their family’s future. Individuals are advised to take their age and financial requirements into account before choosing a suitable insurance policy. Get a term life insurance and secure your family’s future.
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Ans: A term life insurance policy provides the sum assured to the nominee after the untimely death of the policyholder. However, an accidental insurance policy provides financial benefits if the policyholder specifically dies in an accident.
Ans: Life insurance policies come with maturity benefits. But term insurance policies have no maturity benefits. If one purchases a term insurance plan, his/her nominees will receive the sum assured if the policy-holder passes away during the policy tenure.
Ans: This depends on the insurance provider and the type of term life insurance policy one avails. Some insurance companies may have the provision of returning the premium amount upon maturity. But this particular feature may demand payment of higher premium amounts.
Ans: Yes, an individual can invest in multiple term insurance policies. They can purchase these policies from either the same or different insurers. Experts advise people to opt for multiple term policies because it decreases the chances of claim rejection.
Ans: No, most term life insurance policies don’t cover deaths caused by natural disasters. Other exclusions include homicides, intoxication, HIV/AIDS and suicides.
Before you go…
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This article has been prepared on the basis of internal data, publicly available information and other sources believed to be reliable. The information contained in this article is for general purposes only and not a complete disclosure of every material fact. It should not be construed as investment advice to any party. The article does not warrant the completeness or accuracy of the information and disclaims all liabilities, losses and damages arising out of the use of this information. Readers shall be fully liable/responsible for any decision taken on the basis of this article.
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