Term Insurance plans are often the lowest cost in the insurance industry. It is a great shock absorber when used to safeguard against unforeseen catastrophic events such as death and disability, a critical illness like cancer, chronic or terminal illnesses where the medical expenses may be onerous.
Reasons Why You Should Buy Term Insurance:
The premium amount for a term Insurance plan is much lower than other insurance plans. This is because the insured sum for a Term Plan has no investment element. An individual would have to pay only 1% of his annual income to get a life cover. This plan offers flexibility as one can choose the duration of the policy from 5 years to 40 years. So, if an individual doesn’t take up a loan or doesn’t want to invest his money in some venture he might go in for this policy as it provides security to his family.
Offers Financial Security
A Term Plan can play a vital role in providing financial security in case of untimely death. Based on the male/female age bracket, this plan takes care of your family’s future insurance needs, seeing that they are taken care of even in your absence. It gives you the peace of mind that your loved ones will be taken care of if something unfortunate happens. A term policy offers the highest death benefit in comparison to all other life insurance policies and hence is very cost-effective ensuring only one’s financial obligations.
Low Claim Rejection
As per the new norms, insurance companies are supposed to specify the period for which they will be considering any non-disclosure of medical information. If you are asked to disclose health-related information on your application form, do so correctly. It is not mandatory to mention ailments that a doctor had never formally treated you for. This option can be added to a whole life policy at any time during the policy term and you can stop paying the premiums much before you retire.
A lot of insurance policies, especially those offered by banks and other financial institutions come with a premium allocation charge. This fee is automatically calculated and deposited towards funding the plan in question. By paying this fee, you have already funded part of your chosen medical policy. However, if you don’t buy this product online, you will be paying a brokerage fee that is 3%-5% of the total cost of the plan.
An important feature to look out for when buying a policy is the riders available for that policy. While some riders may not be necessary depending on your requirement, some riders like Critical Illness cover are useful in covering your family’s financial needs in case of unforeseen circumstances like illness and accidents.
If you are Looking for Life Insurance? Get covered knowing you are not paying the extra brokerage fees with your policy. Paybima has a range of Life Insurance plans from 10+ popular insurers at attractive prices. A Term Plan can be an affordable option with clear coverage and policy benefits. For more details, visit Paybima for Mahindra health insurance related queries.