Guide to Secure Your Family with a Term insurance Plan
Updated On Aug 15, 2021
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It is of utmost importance to protect your family financially. The family members of the policyholder may have to face financial burden in case the sole breadwinner of the family passes away owing to an accident or illness. Avoiding these eventualities all time is not in your hands, however preparing yourself in advance against them is surely something that you can definitely handle. Along with savings funds, investing in a term insurance plan can definitely help you in securing the future of your family in case of the demise of the sole breadwinner.
What is a Term Insurance Plan?
Term insurance is a kind of life insurance policy that offers a lump sum amount to the nominee mentioned in the policy document in case of the demise of the policyholder during the policy tenure. You need to pay a premium amount for the term insurance tenure.
When to Buy a Term Insurance Policy?
An individual should purchase a term insurance plan as soon as they start earning their own money. Also, this is the time when term insurance plans can be bought at a cheap premium price. Even in case you are not having any dependents, when you begin earning your own money, you must not delay in purchasing a term insurance plan as the premium increases with the increase in age.
What are Some Riders that can be Added to Your Term Insurance Plan?
Other than the standard term insurance plan, you get an option to include riders to your insurance plan. These riders can be availed by paying an additional sum, however they offer extended coverage options which offer protection to you against any eventualities, which a standard term insurance plan does not offer. Some of the additional riders that you can purchase with your term insurance plans are as follows:
Waiver of PremiumUnder the Waiver of premium rider even if you fail to make payment of your premium because of any disability or loss of income, your insurance plan would still remain active.
Accidental Death BenefitUnder this rider, the nominee is given an additional amount which is more than the basic sum assured in case the policyholder dies because of an accident.
Income BenefitUnder this rider, the nominee is allowed to get an extra income other than the sum assured on the monthly basis in case of the policyholder’s demise.
What is the Significance of Renewing Your Term Insurance Plan?
Renewing your term insurance plan on time helps you in maintaining the validity of the benefits offered under the plan. In case you get your insurance plan renewed after a specific time period, you are required to pay an added interest apart from your actual payable premium. A lapsed term insurance plan even puts the security of your family at risk.
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.