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.
Importance of taking Term Insurance
In our country there is very little knowledge on the term insurance and its benefits. Another reason why people not shown interest is, they have the wrong assumption of seeing insurance as the investment and looking for the decent returns at the end of tenure.
If that is the case, one should not think about taking the insurance. There are lot other products available in the market to earn good returns. But, when you are no more, who will support your family or give the needed financial support. Taking term insurance is like sacrificing some money to save your family if you are not in this world any more.
Anytime did you think that when you are taking the car insurance, did you get the returns at the end of year?. But, you are benefited when you met accident. Even we are protecting our vehicle by taking insurance, why not save our family by taking the term insurance?. If you are the only earning member in the family, first thing you have to take the term insurance with maximum coverage. Spread this awareness to your friends.
Don’t confuse with health insurance and term insurance. Health insurance pays you when you have illness on you and your family. Term insurance pays your family when you are died.
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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December 5, 2009 at 1:34 am
Pl explain the best Insurance provider with lowest Term Insurance plans in India for Rs 32Lac
January 16, 2010 at 6:01 am
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 16, 2010 at 6:37 am
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,
Krishna
April 16, 2010 at 11:59 pm
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,
Ganesh
June 6, 2010 at 10:41 pm
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
August 16, 2012 at 7:01 pm
Hi Sir,
Can u pls explain what are the important points to be taken care of when purchasing the term policy for 25 year of person? or the points where company usually cheats or rejects the claim.
Regards,