Procuring a risk cover in the form of life insurance is a prime component of financial planning. Individual long term goals may vary, but the necessity of a robust life insurance policy is beyond doubt. With a plethora of insurance companies in India offering a wide array of life insurance plans, it is difficult to choose a plan tailor-made to suit your needs. In order to make an informed choice, it is important to know about the basics of life insurance plans and its operating principles to match to your individual preferences and needs, so that you can achieve your long term goal.
What is Life Insurance?
Life Insurance policy is a contract between you and the insurer to provide you with life risk cover during the currency of the term of your chosen policy for a fixed sum assured against a periodic payment of premium. In the unfortunate occurrence of your demise, your nominee is paid the sum assured as death benefit and on survival, you stand to receive maturity benefit as per terms and conditions of the plans.
Basics of Term Insurance Plan:
Term Insurance Plans are solely designed to protect your family in the event of your demise during the currency of the policy. Despite the absence of any payout in survival, choosing a Term Plan makes sense because no other plan provides such protection to your family replacing practically the income loss due to your demise. Best Term Insurance Plans come with riders to enhance your cover. The common riders are:
Best Term Insurance Plan
There are many attractive Term Insurance Plans in the market. Some of the significant ones that one may opt are:
Reasons to choose Term Insurance Plan with critical illness cover:
As Term Insurance Plan provides only life risk cover during the policy term, it is worthwhile to opt for critical illness rider to enhance your cover. This is more so as the term insurance plan provides you with immediate payout on the first diagnosis of major critical illnesses like cancer, heart attack or organ failure. While the plan will protect your family in your absence, it will also help you tide over the financial crisis caused by such major illnesses. The Term Insurance Plan with critical illness cover caters to both hospitalization and domiciliary treatment expenses with assured cash flow during convalescence. The key benefits are:
By all means, buying the Term Insurance Plan with critical illness cover makes sense. The prime intent of protecting your family independent of your presence is fully met. Additionally, with critical illness cover, the financial crisis arising out of terminal illness and its aftermath are adequately taken care of.
© Copyright NewsKarnataka 2016 . All Rights Reserved.