Life insurance is not an investment so much so as it is a replacement plan. It is a simple concept that when a person passes away, his or her family is not affected financially. Also, the term insurance in “Life Insurance” is a little misleading as one is not insuring anything, no one can keep a person from dying.
A few investments in during the lifetime will result in a beneficiary getting a stipulated sum after the death of the policyholder. The survivor benefit is given when the policy term comes to an end, and since the term is often long, this is unlikely. More often than not, life insurance plans, term insurance is seen as a bad investment due to its abstract nature.
But, it is advised by every financial expert to invest in at least one such plan.
There are different types of life insurance plans, term insurance or such policies. The insurance holder gets death benefits after a said amount of time. If he/she were to face an untimely death, the financial situation of the beneficiaries will be taken care of by the company.
You are asked to pick a nominee or nominees when you buy life insurance. Usually, they are the nearest family members or spouse, and they get the benefit from the company.
Life insurance plans, term insurance is usually flexible allowing the person to decide if the benefits are to be given in lump sum or as a monthly amount. There are many choices when it comes to insurance and you can select one of the best term insurance for yourself.
Features of Life Insurance Plans, Term Insurance
Each insurance company has different plans and policies and so features vary. You can always do a term insurance comparison to find the life insurance, term insurance that fits your needs.
But some core features persist among all plans like tax saving investments benefits and death benefits. The survival benefits maturity age which can be anywhere between 65-70 years. Plan choice is another feature that lets the insurance holder choose based in single or joint life insurance.
Term insurance policies provide a lot of flexibility which is needed given the nature of the insurance.
Every Indian citizen can buy an insurance policy from the various government and private insurance companies. Even a minor’s life can be insured by parents or guardians.
The Various Benefits
- A lump sum amount in an event of sudden death
- Life insurance plans, term insurance facilitates Provisions for the family that they continue to live without financial difficulties
- Takes care of the family members and other beneficiaries in case of sickness or illness
- SBI term insurance also has seamless online feature to make it even less painful to claim the amount
- Lump sum amount is given if diagnosed with critical illness
- Additional amount if faced with sudden death
How can one be sure that this is the best insurance plan 2016? The company’s reliability is one of the key factors when it comes to deciding which life insurance, term insurance to get.
Also, check what types of scenarios are covered in the plan, for example, term insurance ICICI covers critical illnesses like cancer.
Then the expenses that are the premiums are a major factor in deciding what plan to buy as one must take into consideration the amount spent over the years to be insured. Tem insurance premium calculators are available to calculate and plan the policy before one buys it.
While applying for a Life Insurance policy, you will need various documents handy. Some of those are PAN card, birth certificate and address proof.
It is best to consult an agent who can guide you well.
The Question Should What to Buy
Do not see the premium amount as a hindrance in your personal budget. In the long run, it is always a good idea to know that when you are gone your kids won’t have to struggle financially.
There are many plans out there each one is slightly different and has some benefits that the other will not have. While studying the plan you are buying, keep a checklist of the features you require.
The importance of Life insurance plans, term insurance is not appreciated enough. It is an investment that provides fixed returns when needed.