What is Term Insurance |Term Plan Meaning- term insurance importance & Benefits

Term Plan Meaning- everything About Term Plan

You need to take term insurance
to secure the future of your family. If you take a loan, you have an illness or
your expenses are high and you don't have money to save, then you should take
term insurance. So that you can improve the future of your family. When you buy
terms life insurance or term insurance. So, it is important for you to know and
understand the term plan meaning. Along with that which plan is best
for you and your family. This is also important to understand. E.g. The life
cover of term insurance taken by you should be sufficient for regular expenses,
children's educational expenses, and other expenses. Our article will
definitely help you to know all this.

 

term plan meaning

What
is Term insurance? Information about term insurance| What is term plan
meaning?

 

 

 

Term insurance is a type of life insurance policy (Also know
Ayurvema in india). which provides financial security against the uncertainties
of life. Term insurance plans provide financial security for the entire family.
Also, you can get optional coverage for critical illness or accidental death.
You are covered for a longer period, while the premiums are affordable. Based
on the term insurance plan purchased by you; In case of your untimely death
during the policy term, your family gets a sum assured. And, in your
non-presence, helps your family to face financial hardship.

 

 

Importance
of Term insurance - Importance of term insurance! Term Insurance Benefits

Term insurance is the cheapest life insurance. Many people
ignore this type of insurance as term insurance does not refund the amount like
other policies. You should know that insurance is not a tool to make money by
investing, it is a tool to face the financial problems of your family. In case
of death during the insurance period, the insured's heirs get the sum insured.
However, the company does not refund any amount to you if the insured is safe.
Due to this reason term insurance is also not given that much importance. Like
car insurance, your insurance coverage is also washed away if your car is not
involved in an accident. But, you don't feel anything about it. In that way, it
is also necessary to think about term insurance. Don't think about it if the instalment
amount is wasted. But, what to do for your family will have financial problems
after your death? Think about it for sure.

 

 

 

 

Term Insurance Benefits- Term insurance
advantages

 

Now that you have got the information,
what is term insurance? Now let us see some benefits of this insurance-

 

 

 

Financial support for the family in
case of crisis in life

 

If you are the sole earner in your
family, a term life insurance can help your family members to face the
unfortunate situation of your death and protect them against any kind of
financial loss. This policy enables you to provide your family with a worry-free
financial future. You can easily get a significant life cover under this term
life insurance plan by paying a small premium.

 

 

 

Cover for critical illness

 

During your 20s to 30s, you may think
that you won't get serious illnesses like cancer or kidney failure. However, if
such a disease strikes you, not only does your health deteriorate, but also
your hard-earned savings to get the necessary treatment for the disease is also
gone in no time. For that, the term insurance plan death benefit is beneficial.
It extends the coverage of life insurance due to critical illness. If you add a
critical illness rider (additional benefit coverage) with your insurance, you
get some of its benefits with the policy. In case of any illness under the
rider, you are paid a sum to protect your family from any financial loss
incurred for the treatment of the illness.

If you want your nominee to get the sum
assured every month instead of outright, there is a facility for that too.
Suppose you have taken a term plan of Rs 1 crore, your nominee can deposit that
amount into the account as installment every month. You can also get this
amount only once. If so the money can be kept and managed. Also if you take the
monthly amount you can increase the monthly amount by some percentage. E.g. 10
thousand this month. 12 in the next month and 14 thousand in the following
month if received. In this way also we can get the amount.

 

 

 

 

 

 

Types
of Terms Insurance- Types of term insurance plan

 

 

Level term insurance-

 

In level term insurance this type of plan, the amount
remains the same. It neither decreases nor increases during the insurance
period. It is cost effective and the insurance benefit is given to the family
member in case of death of the policyholder at any time during the entire
policy period. This is why we can call Level term insurance the best type of
life insurance plan. We can pay the amount that we can afford in one month as
premium. And can secure the future of the family.

 

 

Increasing term insurance-

 

The premium for this type of plan is higher than the premium
for other types of insurance policies. In this, you can increase the sum
insured every year. In this, the premium remains the same, but the sum assured
increases over time.

 

 

Decreasing term insurance-

 

In this type of plan, the total coverage amount of the
insurance decreases over time. These plans come in handy for loan repayment as
the amount requirement decreases over time. As the loan depreciates over time,
so does the sum insured. And if you don't need a lot of money, you can buy this
type of insurance.

 

 

Convertible terms plan-

 

In this type, it allows the policyholder to change the
insurance plan in the future. If the policyholder does not want to change the
plan, then the previous plan is continued.

Return of Premium-

 

In this type of plan, all premiums paid are returned to you
if the policy holder is alive and the policy term is completed.

 

 

 

 

 

 

 

 

 

 

 

Best
companies for buy Term life insurance- Trusted companies for buying term
insurance

 

 

Max life insurance

 

  This insurance
company is a partnership of Max Financial Services and Axis Bank. These plans
are specifically designed to meet the customer's plans.

According to IRDAI data for 2022-21, the claim settlement
ratio is 99.35%, the highest compared to other insurance service providers.

 

 

Aegon Life Insurance

 

The company is global and provides insurance services in
more than 20 countries. They have their head office in Mumbai in India and
their head office in Netherlands. As per the IRDAI data for 2022-21, the claim
settlement ratio was 99.25%. This company also has more than 3 lakh customers
in India.

 

 

Bharti Axa Life Insurance

 

This company was established in 2006. This company comes in
the list of best insurance companies in India. This company is more popular as
they offer different price plans. Its claim settlement ratio in 2020-21 is
99.05%.

 

 

 

 

 

So friends in the above paragraph we have suggested the name
of some best life insurance company. Apart from this, we have shown some
company names and their claim settlement ratio below. Be sure to check them out
too.

 

Aditya Birla Sun Life Insurance 98.04%

 

Ageas Federal Life Insurance 95.07%

 

Aviva India Life Insurance 98.01%

 

Bajaj Allianz Life Insurance 98.48%

 

Canara HSBC Life Insurance 97.10%

 

Daiichi Life Insurance 95.96%

 

Dhfl Pramerica Life Insurance 98.61%

 

Edelweiss Tokio Life Insurance 97.01%

 

Exide Life Insurance 98.54%

 

Future Generali Life Insurance 94.86%

 

HDFC Life Insurance 98.01%

 

ICICI Prudential Life Insurance 97.90%

 

IndiaFirst Life Insurance 96.81%

 

Kotak Life Insurance 98.50%

 

Life Insurance Corporation of India (LIC) 98.62%

 

PNB MetLife Insurance 98.17%

 

Reliance Life Insurance 98.49%

 

Sahara India Life Insurance 97.18%

 

SBI Life Insurance 93.09%

 

Shriram Life Insurance 95.12%

 

Tata AIA Life Insurance 98.02%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Most of the people are not aware about term insurance. They
think that only a person suffering from an illness should buy it. But not so,
death in life can reach anyone and anytime. It is important to be aware about
term insurance in order to get financial help for your family in the subsequent
period.

So, In  this article, complete information about term insurance & term plan meaning has been seen. So if you liked this article then share it with your friends. So
that they also get information about term insurance. If you have any questions
you can ask us through comments. We will definitely answer them. Thank you!