Common Features of Term Insurance Plans That Must Know About

Term insurance is known as a pure protection plan as it provides life cover and financial protection to your family in case of your unforeseen demise during the policy tenure. Term plans provide comprehensive coverage at a reasonable cost. Term insurance plans offer you flexibility to choose the policy term according to your requirements and budget. Term insurance plan lets you ensure the financial security of your loved ones in your absence.

Below mentioned are some common features of term insurance plans.

Common Features of Term Insurance Plans That Must Know About

Following are some common features of term insurance plan that will help understand how a term plan works:

1. Affordable Premiums

Term insurance plans are known for providing comprehensive coverage at affordable prices. Term insurance mainly covers premature demise of the life assured hence the premiums are low. You can choose a high sum assured for your plan and the premiums for the term insurance can be affordable. You can avail the benefit of high coverage at affordable premiums.

2. High Sum Assured

You can choose to opt for high sum assured for your term insurance plan as term insurance are purchased to provide financial security to your family in your absence, if you choose to purchase a term insurance plan with a high sum assured you will be able to ensure that your family is financially secured in your absence. 

3. Long Coverage Period

Some term insurance plans offer whole life cover that is, life cover for upto 99 years of age. Term insurance plans offer a long coverage period. The coverage period under term insurance plans is long term to ensure that you are covered even if you get old. 

4. Additional Coverage

Under term insurance plans you get the option to enhance the base coverage of your policy by adding additional coverage to the policy. These additional coverage are known as rider, some common riders that are opted with term insurance plans are Accidental Death Cover, Accidental Total and Permanent Disability, Critical Illness Cover, Waiver of Premium Benefit etc. You can choose a rider that best suits your requirement and fits your budget. 

5. Multiple Payout Options

Under term insurance plans you get the flexibility to choose from multiple payout options. Multiple payout options available under term insurance plans are lump sum, lump sum plus regular instalments, regular instalments and part lump sum part regular installments.

Conclusion

Term insurance plans are the simplest risk protection plan that provide you comprehensive coverage without bothering your budget. You can add riders anytime during the policy term to enhance the coverage and you get the option to choose your own policy term according to your requirements. Term insurance plans are a great way to ensure financial protection of your family in your absence.

Also read - Medical Test in Term Insurance Explained

Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.