Term Insurance
It is a life insurance policy that provides for a certain period of time or a specific "term" of years, and if the insured person dies during the time period mentioned in policy and the term insurance policy is active than a Death benifit (amount mentioned in policy) will be paid.
Term insurance is much less expensive as compared to permanent life insurance. Like most types of permanent insurance, term insurance has also no cash value.
If you have family and dependents than term insurance is a must. No other policy in any part of the globe will offer you as much value for money as this one.
Let's say you bought a term insurance policy for Rs 25 lakhs ( 2.5 million ). The term of the policy is for 20 years if you pass away during this period, you family or dependents will richer by Rs 25 lakhs. But if you outlive your policy, all the money you pay to the insurance company to maintain your policy would have gone down the drain.
Term insurance works like a betting game. For example
You are willing to bet that you would die this year and cough up, say Rs 2000
The insurance company bets that you will not die and they are willing to pay your family Rs 1 million ( Rs 1000,000 ) if you die.
If you survive you lose the bet and the insurance company takes away Rs 2000 and if you win the bet you better know what happen.
The bet goes on over a period of 5, 10, 15, 20 whatever number of years that both you and the insurance company have agree to.
But don't give up so quickly !!!!
Questions you must ask before you take term insurance from any insurer.
Riders :
This are optional add-ons which can be attatched to the main insurance policy for an additional premium. This additional premium is added to the main premium and has to be paid along with it. Different companies offer different riders. Have a look at some of them.
AD ( Accidental Death ) :
The Policy pays you additional sum assured in case of death happens due to accident.
CI ( Critical Illness ) :
On contracting a specified illness such as cancer, kidney faliure, heart attack etc the insurance company will pay the insured amount.
You can choose the amount you want to be insured for. Generally, critical illness riders have a maximum limit of Rs 10 lakhs ( 1 million ).
DA ( Accidental Disability rider ) :
If you become permanently disabled and are unable to support yourself or your family, the insurance company steps in. It provides an income upto specified amounts till the end of the term of your policy. Generally it is an annual payment.
WP ( Wavier of Premium ) :
This rider makes sure that incase you are not able to pay the future premium due to disability or income loss, the future premiums are wavied off, but your policy is still in force like always.
Have a look on below chart you would have got a fair idea about the term insurance plans from different insurer
It is a life insurance policy that provides for a certain period of time or a specific "term" of years, and if the insured person dies during the time period mentioned in policy and the term insurance policy is active than a Death benifit (amount mentioned in policy) will be paid.
Term insurance is much less expensive as compared to permanent life insurance. Like most types of permanent insurance, term insurance has also no cash value.
If you have family and dependents than term insurance is a must. No other policy in any part of the globe will offer you as much value for money as this one.
Let's say you bought a term insurance policy for Rs 25 lakhs ( 2.5 million ). The term of the policy is for 20 years if you pass away during this period, you family or dependents will richer by Rs 25 lakhs. But if you outlive your policy, all the money you pay to the insurance company to maintain your policy would have gone down the drain.
Term insurance works like a betting game. For example
You are willing to bet that you would die this year and cough up, say Rs 2000
The insurance company bets that you will not die and they are willing to pay your family Rs 1 million ( Rs 1000,000 ) if you die.
If you survive you lose the bet and the insurance company takes away Rs 2000 and if you win the bet you better know what happen.
The bet goes on over a period of 5, 10, 15, 20 whatever number of years that both you and the insurance company have agree to.
But don't give up so quickly !!!!
Questions you must ask before you take term insurance from any insurer.
Riders :
This are optional add-ons which can be attatched to the main insurance policy for an additional premium. This additional premium is added to the main premium and has to be paid along with it. Different companies offer different riders. Have a look at some of them.
AD ( Accidental Death ) :
The Policy pays you additional sum assured in case of death happens due to accident.
CI ( Critical Illness ) :
On contracting a specified illness such as cancer, kidney faliure, heart attack etc the insurance company will pay the insured amount.
You can choose the amount you want to be insured for. Generally, critical illness riders have a maximum limit of Rs 10 lakhs ( 1 million ).
DA ( Accidental Disability rider ) :
If you become permanently disabled and are unable to support yourself or your family, the insurance company steps in. It provides an income upto specified amounts till the end of the term of your policy. Generally it is an annual payment.
WP ( Wavier of Premium ) :
This rider makes sure that incase you are not able to pay the future premium due to disability or income loss, the future premiums are wavied off, but your policy is still in force like always.
Have a look on below chart you would have got a fair idea about the term insurance plans from different insurer
