Deciding your sum assured amount depends on various factors. It varies on the number of dependents you have, your investment needs, affordability, the lifestyle you wish to provide to your family, and your children’s education.
A term insurance offers your nominee an assured payment as a death benefit in case of your untimely demise.
You will not receive anything as there is no maturity under Term Insurance. The only benefit you gain is the death benefits. Your loved ones can gain the sum assured if you pass away.
You should choose a policy term till your retirement age or may be till a few years after retirement. Term insurance is taken to cover the risk of loss of income. So ideally take term insurance for a period in which you will be earning money.
A term plan is a time-bound insurance policy for which you pay premiums at regular intervals. In a term plan, you enjoy high coverage at low premiums.
Once the policy is issued to you, the premium amount stays the same throughout the entire tenure of the policy. This also depends on the tax regulation declared by the Government of India.
No. Suicidal death of the insured during the first year of the cover is a major exclusion. Other such common omissions are self-inflicted injuries and involvement in adventure sports. Some recent term plans come with terrorism cover as well.
If you want to buy a term plan for yourself, you can do that on your own name. If you wish to cover your family members, you will have to buy individual term policies for them.
Your loved ones can stay hassle-free when it comes to claiming settlement. The procedures vary from one insurer to another. The claim settlement can take anywhere from 8-15 days depending upon the prevailing conditions of your medical claim.
If you wish to surrender your policy during the policy tenure, you remain at loss! Remember that this is a term insurance plan. You won’t gain any benefits if you surrender your policy.