Throughout our lives, we make several plans for the future - some grand, some small and humble. That is why one of the earliest lessons we are taught in personal finance is to stay prepared for unforeseen circumstances by making the right investments that make these plans possible. In particular, one of the most essential and convenient investments you can make to safeguard the plans you make for your family is to avail a trusted term insurance plan.
However, even as a term plan strives to protect your family’s finances in the future, there is also a lot that it can do for you in the present. After all, if life is unpredictable and can keep changing at all times, why shouldn’t your term plan? That is where term plan adjustments factor in. Here is all you need to know about what term plan adjustments are and how they can work for you and your family:
Before delving into the basics of term plan adjustments, let us review what a term plan entails for a policyholder. A term insurance plan is essentially a type of life insurance policy in which a predetermined amount of coverage is provided to the insured, for a specific period ie. a ‘term’.
If the insured passes away while the term of the policy is still underway, the beneficiaries of the insured receive a predetermined amount known as a death benefit. Unlike traditional life insurance policies, term plans offer policyholders far more economical premiums as well as much more flexibility in terms of insurance features. This is how term plan adjustments can prove beneficial.
The changes that a policyholder can make to his or her term plan per his specific requirements are known as term plan adjustments. Adjustments on a term plan can be made with respect to the coverage, premium and tenure of the term insurance policy.
Keep in mind that no two insurers are alike, and hence not all insurance companies offer the same type of term plan adjustments. It is recommended that before availing a term plan, an insurance seeker should review the various plans and features offered by multiple term insurance providers.
In its simplest form, a term plan has a few basic features to ensure that your beneficiaries are covered in the event of your unfortunate demise. As a policyholder, you are expected to pay a certain amount in premiums regularly, over certain tenure to receive a certain death benefit.
However, with term plan adjustments, you are provided with the freedom to adjust these features of your term insurance policy as per your changing requirements. For insurance, you are offered the freedom to choose your mode of premium payments, whether it be making a single payment for the entire term or payments on an annual basis.
You can avail term plan adjustments in terms of increasing or enhancing your overall term insurance coverage. At the outset, you can opt for your choice of level, increasing or decreasing insurance coverage. Apart from this, you can also enhance your coverage with optional riders such as Accidental Death Benefit and Accidental Total and Permanent Disability Benefit that protect your family against unforeseen circumstances. You can also extend your term insurance coverage from extending over a specific term to your entire lifetime.
Apart from these, you can also avail term plan adjustments as they apply to your choice of death benefit payouts, such as lump-sum, monthly payouts or both. To provide additional protection to your family’s future, you can also include your spouse into your term insurance policy on discounted rates.
Conclusion Term plan adjustments can be an efficient way of providing you with exactly the type of coverage and features you need. In the age when everything is customized, a term insurance policy that offers adjustments can be a valuable investment indeed.
If you too would like to avail a term plan that offers a variety of excellent term plan adjustments, consider availing the iSelect Smart360 Term Plan from Canara HSBC Oriental Bank of Commerce Life Insurance. This term plan offers multiple options for coverage and payouts as well as several beneficial add-on covers. If you are an existing customer of the bank or looking for term insurance for a female insured, you can even avail additional discounts on this term plan.
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