Term insurance plan means to pay minimal premium for huge life covers. Like any other traditional insurance plan, term plan will not return any premium at the end of policy term. Term plan is truly economical means of providing you with a high level of financial protection with less premium. In other word, a term plan is a pure risk cover plan without any maturity benefit. This is because only mortality charges and administration expenses are covered in the premium amount. There is no savings element here. If a policy holder dies, his nominee will get the insured amount with rider benefits if any. If not, term insurance plan will not return any money to the policy holder.
Term insurance known as the purest and best form of insurance. It is the plan, highly recommended by personal financial planners to their clients as an excellent option to protect the future of their family members. An ideal term plan should have an insured sum equal to 7 or 8 times of the annual income of the policy holders.
The biggest advantage of a term plan is, its ability to provide adequate insurance with cheap premium. A policy holder also able to select many required riders like accidental death benefit, partial disability benefit, critical illness benefit e as per his or her requirement, with minimal premium.
Prior to select a term plan, it is recommended for any individual to evaluate all the options before finalizing the policy. Collecting and comparing the features of term plans from various insurers is the known best option to decide and get the best policy available in the market.
Term insurance plan is always best to start early. For an example, if you select a term plan for 10 lacs at the age of 24 with a term of 25 years, you are required to pay an annual premium of 2500 per year for throughout next 25 years. There will not be any increase or decrease in annual premium amount throughout the policy year. Other way, if you are planning to start the same policy at the age of 35, you required to pay an annual premium of 5000 for next 25 years. The premium amount of any term insurance plan calculating based on your age of starting policy, it is always better to start the term plan at the earliest to get small premium.
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