Term Insurance is the cheapest form of life insurance that provides death benefits to the beneficiaries of the insured person for a defined period of time.
Understand the Basic Facts About Term Insurance Plans Before Making A Decision
Term Insurance is one of the categories of Life Insurance . In this, in the event of the death of the
insured person during the term of the policy, the nominee(s) named in the policy will receive the full
sum assured. However, in case the insured person survives the policy term, in most cases nothing is
payable. However, there are many term insurance products, where the policyholder gets the
premium back if the policy period is survived by him.Such policies are called Term Return of
Premium (TROP) policies. Such policies are usually more expensive than pure term insurance for the same level of life cover
Term Plan- Its Meaning ?
As the name suggests, this type of life insurance policy offers coverage for a stipulated period of time. The risk is covered only for the chosen time period and if the term is survived by the insurer, the risk cover no longer exists. If, during the term period, the insurer dies, the death benefit is paid as the policy is active. When looking forward to buy such a policy, it is wise to browse online through the available Term insurance. It is imperative to keep the objective of buying a Term Insurance Plan in mind before taking a decision. It is usually bought for substituting the financial loss that occurs due to the death of the insured for his family members.
Thus, it is best for a young person with dependants to buy term insurance plan rather than a person who is about to retire
from his job. At Insuring India , one of the popular web aggregators, a lot of information is available about various term plans offered by different Insurance Companies
If a person finds it difficult to understand the intricacies of Term Plans and what to look for before buying a policy, it is best to seek the help of an insurance advisor.