Finding a term insurance plan has become necessary for anyone who has dependents. It is a fact that the best term plan offers the most value for your money. A term insurance plan is basically a life insurance policy where a fixed sum assured is paid on the death of the policyholder. The premium rate of the term insurance plans is affordable and dependent on the term of the policy and the sum assured you choose.
Buying the best term insurance plan is a hassle-free process and can be done in online or offline mode. According to your requirement and suitability, you can compare the various term plans and choose the best one available in market.
What exactly is a term insurance plan?
A term insurance plan is a type of life insurance policy where the insurance company provides coverage for a certain period in return for a specific premium amount. The policyholder has to pay the premiums for a specific period of time. In case of a mishap with the policyholder during the term of the policy, the death pay-out is given to the policyholder’s family. A term insurance plan provides high returns at low premium rates.
There are also many term insurance plans like pradhan mantri suraksha bima which are handled and guaranteed by the government of India.
Why should you purchase a term insurance plan?
Everyone needs financial protection under a term insurance plan to deal with any unexpected emergencies. If you are the only earning member of your family, you are responsible for the overall well-being of your parents, children and spouse. Buying the best term insurance plan is essential to make sure that you fulfil their financial needs when you are not around.
Benefits of buying a term insurance plan
1. Significant cover at affordable premium
A term plan offers significant life cover at affordable premiums. It is a fact that the earlier you buy a term plan, the lower is the premium you will need to pay for a life cover. Term plans also offer critical illness benefits to help you get the best treatment without worrying about the costs.
2. Accidental or permanent disability benefits
You can also choose a long-term cover to create financial support for your family at an affordable price. A term insurance plan also offers accidental or permanent disability benefits where you will get the financial assistance in case of accidental or permanent disability.
3. Payment flexibility
With a term insurance plan, you also get the flexibility to choose the tenure of the premium payment. You can either choose regular pay or a lump sum payment for your term plan.
4. Tax savings
You will also get tax saving benefits on the premium paid under Section 80C of the Income Tax Act as per prevailing tax laws. Also, the lump sum amount paid under a term plan is tax exempted under Section 10 (10D).
How to purchase a term insurance plan
Buying a term insurance plan online is simple and stress-free process in India. With just a few clicks, you can secure financial future of your loved ones. Here’s a step-by-step guide:
- Visit the official website of the insurance provider and enter details such as your gender, date of birth, contact details and monthly income.
- Enter the policy tenure and the sum assured. The younger you are, the lower will be the premium amount. So, purchase a term insurance plan as per your age.
- Choose the mode of pay-out of the insurance. You can select a lump sum pay-out or a monthly pay-out to the nominee for a pre-specified tenure. This is important for meeting life objectives like your child’s higher education and marriage.
- After that, you will be required to fill a KYC form. You can enter your name, contact number, and address. Upload your ID such as age proof, driving license, passport and a recent photograph.
- Enter medical details such as your weight, height, medical condition, or history of hospitalisation.
- It will also ask you to undergo health tests if you apply at a certain age or need a high insurance cover.
- At last, you will have to add your online payment details. You can pay through debit or with credit card or net banking. A soft copy of your plan will also be shared with you by email and a hard copy will be posted to you at your address.
Carefully comparing and then choosing a term insurance plan can help you secure the financial future of your loved ones. The best term plan will protect your family against any monetary crisis in your absence. With a simple step-by-step procedure as outlined above, you can easily purchase a suitable term plan online.
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