Concepts Of Term Insurance

Posted by Jenny Dsouza on April 29th, 2017

Put a stress on your brain a bit and imagine a product that guarantees security and safety to you and your loved ones within your budget. Hard to imagine? Guess what? It is not some distant dream or a well created fantasy of your mind but a reality. Now, you must be wondering what I am talking about? Ok, without wasting your time or creating more suspense, let us introduce to you ‘TERM INSURANCE’.

Term insurances are sort of life coverage plans that cover and protect you and your family but for a certain period of time specified in the policy. Unlike life insurance policy, it does not add cash value or is considered a long time investment but covers your family for a specified period that too at low price.

When you go to the market to buy a product, you compare it with other products as well. Same is the case with term insurance plan. Usually, people inquire about the cheapest term plan though it is not sufficient. You are required to estimate and analyze all key features of term policies available in market before you give your approval hence, term insurance plans comparison is a must.

Attributes of Term Coverage Plan

Below is the chart and detailed explanation of the main features of term insurance plan that will be helpful to you at time of term life insurance comparison-

Term-insurance-plan-features

Policy Time Period– It means the validity of the term insurance plan. In short, for how long your term coverage plan will cover the insured and his family. One can buy term plan for 5-25 years depending on his/her requirements.

Premium Rates– It refers to premium payable mechanism. In other words, you as insured can either give premium monthly, annually or pay full premium at one single time depending on the policy terms. However, the single premium is usually applicable only for 5-15 years.

Plan of Choice– Now another feature of term coverage is the type of plan. You can buy either joint term plan including your family or go for single life basis term insurance plan.

The Eligible Age– The most important feature of term plan is the eligible age for buying the insurance. The entry age applicable to purchase policy is 18 and the maximum age is 65. However, the maximum age may differ insurance to insurance (conditions apply)

Death Benefits– The nominee mention in the coverage plan will receive the money or other benefits stated in the policy at time of buying.

Riders Benefits– You can purchase riders or optional benefits besides buying the term insurance plan. These riders can be accidents, serious illness etc.

Keeping in mind the attributes & eligibility  stated above, compare term insurance plan on basis of its price, premium rates, riders and other benefits that may differ company to company.

Source: https://www.policyx.com/blogs/concepts-of-term-insurance/