Term Plan Insurance an overview

Monday,03 April 2023 12:07 AM IST

Anupama Nair

You work hard all your life to provide financial security for your family. Have you ever thought what would happen to your family if something happens to you? Unfortunately, we do not have the power of Nostradamus to predict the future. In such a scenario, the term insurance is the best option. What is term insurance? Type Term Insurance is the simplest type of insurance that provides life coverage for a fixed period. If the insured dies during the policy term, a lumpsum equivalent to the sum assured is paid to the nominee. For example, if Ralph a 30-year-old has taken a term insurance of Rs. 1 crore, and he died of Corona in Jan 2022, his nominee will get the sum of Rs. 1 crore.

Some features of term insurance are:

• It is the most cost-effective plan.
• Pay the policy premium only till retirement
• Flexibility to receive payout as monthly income in addition to lumpsum
• Choose riders to make your term plan more comprehensive
• Flexibility to enhance or decrease the Insurance Cover

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