What is Term Insurance Plans?
- 6 Comment
Introduction
Term Insurance plans are the purest insurance plans available in the market. There are different types of insurance plans in the market like Term Insurance, Endowment Insurance, ULIP, etc. Every type has its unique features. I have already written one article about the difference between insurance and investment. So, it is good to select the suitable insurance plans to protect your life and family. This article presents the key facts about the term insurance plans. If you have any doubts post it in the comments section. Subscribe to our future articles here.
Term Insurance Plans
- The following are the key facts about the term insurance plans.
- Term insurance plans are the purest form of insurance plans. It will cover the pure risk of your dying.
- In the event of your death, your nominees will receive the assured amount.
- You will not get any benefit, if you survive the policy term. As already said, the purpose of this policy is to protect your family from your death.
- The premium for term insurance policy is very low compare to other insurance policies. For example a 30 year old person takes 20 years policy for the sum assured of Rs.500000. His premium will be just Rs.1500 per year.
- Premiums are payable every year.
- Generally maximum entry age of this policy is 50 years.
Summary
It is the purest form of insurance cover for your family. If you are thinking about protecting your family from your death and not looking for any returns, it is the suitable policy for you. Hope this article helped you to understand the importance of term insurance policy. If you have any doubts post it in the comments section.
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6 Comments on this post
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SSR said:
Pl explain the best Insurance provider with lowest Term Insurance plans in India for Rs 32Lac
December 5th, 2009 at 1:34 am -
filipe said:
Term insurance policy
As you have given an example of a 30 year old taking a policy for 20 yrs he will be 50 yrs then, when the policy matures . what happens then if he still alive at the age of 50. is the policy still remains in force till he dies. or the premium he has paid has all gone in vain because he did not die during that policy term.
January 16th, 2010 at 6:01 am -
krishnas said:
Hello Filipe,
If you survive till the policy years, all the money you have paid as the premium will not be given. Term insurance is the high protection for your life. You have to sacrifice some money for your family protection. If you are looking for any profit, then invest in some other areas like mutual funds.
Thanks,
KrishnaJanuary 16th, 2010 at 6:37 am -
Ganesh Salunke said:
Hello Sir,
I am Ganesh Salunke 30 yr old. I am read your article on Term Insurance. In that article you mentioned that “30 year old person takes 20 years policy for the sum assured of Rs.500000. His premium will be just Rs.1500 per year”.
Kindly guide me about the any similar policy details (Company name) is available in the market.
Regards,
GaneshApril 16th, 2010 at 11:59 pm -
Brijesh said:
I want to have term insurance and want to know wher can i get the chart or if you can suggest me less premium and more advantage lic term insurance i wud be greatful. I am 31 yrs old and would like to get term insurance for not less then 15-20 lakhs.
Also pls explain for how long no of yrs are terms insurance one can take for. I will like to have say term insurance for next 35 yrs or 30 yrs is it possible or say for next 45 yrs is it possible…how long one can have term insurance for.
You have wonderful articles on site must say Thank you for educating us.
Regards
Brijesh
June 6th, 2010 at 10:41 pm
[...] the life but not ensuring any savings for the future. The example for the pure insurance plans are term insurance. Many people wanted plan which gives protection also gives the returns for their investment. So, [...]