Key Features of Term Insurance Policy:

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Key Features of Term Insurance Policy:

Term Insurance Plans are specifically designed to secure your family's core financial needs in case of death or uncertainty. According to the plan, family/dependents of the life insured is/are eligible for a lump sum amount in case of death or critical illness, if applied for, of the life insured and during the term of the policy. Such an insurance plan can help your family to have sound financial independence, even if you are not around.



The key features of term policy are:
  • Policy Term: The minimum policy term is 5 years, with the maximum varying from 25 years to whole of life for equated monthly premium payments. For single premium payment policies, the policy term is 5 to 15 years.
  • Plan Choice: Term insurance provides flexibility in terms of choosing the plan on single life basis or joint life basis.
  • Entry Age: To be eligible for term insurance plans, the minimum age of entry is 18 years, with a maximum age limit of 65 years with optional add on benefits.
  • Death Benefits: On death of life assured during the term of the plan, the nominee or assignee, in case where the policy has been assigned to someone else, will receive the total/ assigned death benefit chosen at the time of commencement.
  • Maturity Benefits: Term insurance plans don't come with any survival or maturity benefits. If one wants maturity benefits, then a TROP (Term Return of Premium) plan is suggested.
  • Additional Optional Benefits: Additional optional benefits such as critical illness and accidental death/ disability or Accelerated Sum Assured, are available for choice.

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