WHAT IS TERM INSURANCE?
Term insurance is a life insurance policy wherein the insurance company provides coverage against life loss of policy holder under the policy Specified period in exchange for a premium. A death benefit will be paid to the nominee if insured person dies with in the policy term.
Term insurance are less expensive as compared to permanent life insurance and ULIP. Only premium is to be paid by the insured person at regular interval of time. Premium is calculated depending upon the age, health, time period and medical history of person.
WHY YOU NEED TERM INSURANCE?
THINGS TO CONSIDER BEFORE BUYING TERM INSURANCE
HOW MUCH COVER DO YOU NEED?
Thumb Rule says to have a life cover equivalent to 10 – 12 times of your annual income.
Term insurance is a type of life insurance it provide life coverage for certain period of time to the insured person for the prespecified of sum assured. Death benefit will be paid if the policy is active or during the time period of policy.
Term insurance is less costly as compare to permanent life insurance and endowment plan. The premium paid amount is less as compare to both the plans .
Opting out of term insurance is much easier as compare to other cash value policy. Term insurance are less tax efficient as the premium paid on term insurance is less as compare to endowment plan but the return on endowment plan is also very less so a person can take a separate investment plan for tax savings.
So term insurance is better than investment instrument than endowment plan,
Feel free to contact us regarding any queries related to Term Insurance.