What is Term Insurance?
Why Term Insurance?
Pure protection plan
Critical illness coverage
Income tax benefits
Accidental death benefit coverage
what are the key factors one must consider before buying a term insurance cover?
How is term insurance different from other life insurance policies?
How the customised GP helps you?
A majority of cases are rejected due to incorrect disclosures or non-disclosures of facts when purchasing Term Insurance. Non-smokers, for example, pay a lower premium than smokers. People who smoke socially, say once or twice a week, buy Term insurance under the non-smoker category. Suppose he dies and the medical history shows that he smoked, the policy will be rejected because of an incorrect disclosure.
The purpose of term insurance is to protect you from risk. Premiums for term insurance are very low, but the sum assured (life insurance coverage) is very high. For example – a healthy, non-smoker person can get insurance coverage for Rs. 1 Crore by just paying say 8000/- per annum. A life insurance coverage equal to 10 times the annual premium is provided by other insurance products that combine investment and insurance. Therefore, if you pay an annual premium of Rs 1 Lac, your life insurance coverage will be only Rs 10 Lac. In order to ring-fence your family against such risks, you must only purchase a term insurance policy.