We can never know that what next moment is holding in hands. Term insurance is a life insurance plan for you and loved once and strong for all such unforeseen events. Term insurance is one of the insurance that can be availed for a certain period of time. It can be said that Term insurance is only for fixed term i.e. fixed number of years. This is a preferable insurance plan because it is less expensive compared to other insurance plans. But, like every coin has two faces, in term insurance plans, one cannot get the benefit of cash value. This insurance policy is only beneficial if the policyholder dies within the time frame during which the term insurance plan is in action. Different term insurance policies offer various terms like 10 years, 20 years etc to the policyholder. The best feature of term insurance policy is that most of the term insurance policies a built-in-feature to get the term insurance policy converted to a permanent life insurance policy irrespective of the health status of the term insurance policyholder.
Types of Term insurance plans –
There are many types of term insurance in the insurance market, some of them are discussed below.-
Standard Term Insurance Plan
Standard term Insurance plan is the most basic and simple term insurance plans. The policyholder needs to decide the premium amount and mode of the same at the time of the policy purchase. The policyholder can pay premium amount annually, half-yearly, quarterly, or monthly as per the convenience. One can choose policy tenure anywhere between 5 years to 40 years as per the current age and the tenure of maturity.
If in case the policyholder passes away during the tenure of term insurance policy then the assured sum is paid to the nominee as per the payout opted by the policyholder initially. Also, this plan only offers death benefits but there is no survival or maturity benefit offered to the policyholder.
Increasing Term Insurance plan –
Increasing term insurance plan is quite similar to the Standard Term Insurance Plans regarding too many features as the premium payment. But, under the Increasing term Insurance plan the life cover is directly proportional to the age of policyholder means the insurance life cover increase with the age. This exceptional feature helps the policyholder to cope with the inflation and structured in the best way to help the insurance policyholder. The increment in the life cover can be 5% or 10% on the base coverage on occasion of policy anniversary.
Joint Life Term Plan
The Joint Life Term Plan covers an individual and his/her better half in a single term insurance policy. It is the best way to secure you and your spouse and to give strength in odd hours without each other. As same as other term insurance policies, the term period of the policy is fixed at the time of policy purchasing. Surviving partner will be the nominee of the policy in case of sudden/untimely death of any one partner during the policy tenure.
Above mentioned Term insurance plans are mere few examples, one need to research well according to need you can compare term plan online and settle down at any term insurance plan accordingly. Even there are various types of riders which can add to the beauty of the term insurance plan. Some of the companies even offer inbuilt features as riders. Riders can be life critical illness rider, hospital cash rider, accidental death rider and etc. Just on paying a small premium amount you can opt for riders in term insurance and save your hard-earned money. If you are in search of the appropriate term insurance plan for the safety of your family then you must take help of an online insurance web aggregator such as PolicyX.com which can help you in choosing the best plan according to your needs.