The security and
happiness of your family members would be your
highest priority. However, life is unpredictable and you need to ensure their
financial stability in case of your premature demise. This financial security
may be achieved through life insurance coverage.
Traditional
endowment and money back policies are expensive due to a higher premium. An
excellent way to avail of higher coverage at an affordable premium is availing
of a term insurance policy.
Term insurance plans
are pure life cover policies that pay your beneficiaries the sum assured in
case of your demise during the policy term. Here are three features of term
insurance policies.
1. Affordability
The premium on
term insurance policies is lower than that on
traditional insurance plans. This enables you to avail of higher coverage at an
affordable premium.
2. Flexibility
You may either opt
for a single premium plan or periodic premium plan as per your convenience. The
premium may be paid monthly, quarterly, semi-annually, or annually.
In addition to the
aforementioned features, several insurers offer value-added features that make term plans more attractive.
Here are two riders you may include with your plan.
1. Accidental death
benefit
As a breadwinner,
you do not want to risk your family’s financial stability in case you meet with
an accident. Treating your injuries may require a huge amount of money that may
deplete your savings. Unfortunately, if you pass away your family members will
have to deal with the emotional distress. You do not want them to further worry
about their financial future. To prevent such a situation, including an
accidental death benefit rider is useful. Your nominees will receive a lump sum
benefit as per the policy terms in case of your accidental demise.
2. Permanent
disability benefit
If you meet with
an accident and suffer permanent disability, you may be unable to continue
working. A permanent disability rider offers installment-wise payments to help
you overcome financial difficulties resulting from loss of income.
Members do not
face any hassles in case the need to make a claim arises during the policy
tenure.
Author: Dhwani S
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