(A necessity for life after life)
Term Life Insurance is one of the best instrument (lowest and fixed premium) for financial protection of family in absence of earning person. Hence we can say “It gives life to your family after your life”.
Please do not treat Term Insurance as an investment plan, since it doesn’t generate income in your presence, but it fulfils all dreams of your family after you, when a suitable Sum Assured plan is chosen.
If your age is 18 Years and you are an earning person then you can buy term insurance of Sum Assured Rs. 1,00,00,000 just by paying monthly approx. Rs. 500+GST (Plan may vary time to time as per market condition)
Premium of term insurance plan is as low as in early age you buy it, as age increases purchase premium amount increases, hence for same sum assured amount, premium is different for person of different age.
Some more thing, when you are addicted to Smoke, Liquor etc. or any health disease like diabetes, thyroid etc. or increases of age, our health risk factor also increases, hence purchase premium also increases.
Special feature of term insurance plan is that Premium remain same throughout premium paying term (whole life) only Tax component varies, when you continue with same policy throughout life.
Hence selection of company should be good while buying term insurance plan, so that you can continue for longer time (may be whole life) with same company/plan, Hence selection of good company and plan might be little costlier but it assures financial protection of family without any worry.
Term insurance also provide Premium Waver facility, and all premium stops in case of death of Insured person.
Now Term insurance plans are available with different riders (additional protection than death) with it. They provide partial/fixed payment in case of selected critical illness, disability and accident etc. as per plan feature. Pure term insurance plan covers death only.
It is better to take essential riders with term insurance plans only, as its premium remain constant throughout the life.
Most of the companies pay for death due to any reason, but not due to suicide in first policy year, for more awareness please check policy terms and conditions in detail.
Due to competition in insurance sector most private companies are offering good plans every year.
You can switch to another Insurance company when you get better offer in future, but whenever you buy it, ensure that company is having good Claim Ratio (most of the claims are fulfilled).
Note:- This article has been written with my longer experience and knowledge of term insurance, features and premium may vary as competition grow, please choose any policy after proper investigation & comparison.
Do reply us for any suggestion or ask for suitable Plan for you. Thanks