Buying a term plan is very easy to buy, almost all Life insurance company provides the Online term Plan with different options and additional features , each of these variants is useful in certain situations , while this option is good news , it can also become a problem , here are few things to keep in mind when you go to shop.
Insurance cover should be able to replace your income and settle outstanding loans. The thumb rule is to be covered for at least 8-10 times your annual income plus any outstanding dues with keep in mind inflation also.
Every time we think we can take term plan without Medical tests this will easy to issue term plan, but more importantly once you go through the medicals test, the onus of and pre existing disease shift to the company.
The term is also important don’t choose term plan for 10-15 years or short term plan just to impress or obliged anybody , Term plan should be between 50-70 age minimum , As this is no maturity plan keep in mind also.
| Plan | Key Feature | Benefits |
| Regular Plan | Premium is fixed for full term and is paid every year , Family gets Insurance cover when the policy holder dies. | Premium is very low if we start early. |
| Return of premium plan | Premium is fixed for full term and is paid every year, Family gets Insurance cover when the policy holder dies. | The entire premium paid back after tax deduction at the time of maturity. |
| Single Premium | Instead of Regular premium the full payment is paid at one go , | Big premium to be on the spot. But overall the premium is vey less. |
| Limited Premium Payment | Premium is fixed for 5/10/15 or 20 year and is paid every year, Family gets Insurance cover when the policy holder dies. | Premium is on higher side but in total we have to pay less in limited payment option. |
| Increasing cover plan | The insurance covers keeps rising over the years, thereby taking care of inflation. | Premium is on higher side but will take care of inflation is case of any misshaping. |
| Staggered Payout plans | On the death of policy holder. Family gets insured amount in monthly instalments. | Premium is on higher side but will take care of Monthly expenses of the family on day to day basis in case of any misshaping. |