Life is uncertain and losing the bread-winner of the family can leave the family in a major financial crisis. A term life insurance promises financial security in the bread-winner’s absence and helps the family cope at least with the financial loss.
Unfortunately, there are many causes which can interrupt their financial wellbeing, and that’s why most term insurance plans give you the option of built-in covers, some free and some to be opted. However, it all makes sense in times of need. Read on to find more about the kind of built-in covers available with the iSelect+ Term Plan.
But first, how does a term insurance work?
The policy buyer decides the duration of the policy, the coverage amount, and add-on coverage options suited for them. Basis the selection, a premium amount for term insurance plan is calculated, influenced by factors like the applicant’s age, health, and lifestyle. This premium remains constant throughout the policy term.
The policyholder then pays this premium at regular intervals. The policyholder can also decide how they want their nominees/ family members to receive the promised amount. Once a policy benefit starts, in case of the demise of the policyholder during the policy term, the insurance company pays the promised coverage amount to the nominees named in the policy and the policy terminates.
In case of a Term Plan with Return of Premium Option, the policyholder also receives a maturity/ survival benefit at the end of the term, if they survive through the duration of the policy. Different policies may offer different benefits on survival through the policy term.
Most policies allow renewal at the end of the term. However, the premium is recalculated basis the new term and policyholder’s age, in case of policy renewal.
Term insurance in-built Covers
The purpose of a term plan is to provide financial coverage to your loved ones in case of an unfortunate event. While, our needs and responsibilities change continuously throughout life, our financial obligations change too, requiring updated solutions every now and then.
If you are at a stage in life, where you see the situation changed from the time you bought your life insurance plan, it is worth revisiting your insurance coverage and altering it as per needs. You might want your promises and responsibilities towards your family’s secure future taken care of in time.
In-built covers or riders allow you to increase your insurance coverage according to your needs as well as those of your family. Some of the most commonly riders are Accidental Death Rider, Child Support Benefit Rider, Critical/Terminal Illness Rider and Accidental Total and Permanent Disability Rider.
The iSelect+ Term plan is a modern-day insurance plan that comes with an in-built Terminal Illness cover at no cost, wherein in case of death or on diagnosis of Terminal Illness, whichever happens earlier, a sum assured is payed to the nominees of the policyholder.
In addition, the following in-built cover options can be opted for with iSelect+ Term Plan:
The importance of life insurance, especially when it comes to securing the financial future of your loved ones, cannot be overstated. Which is why one of the most economical and flexible forms of life insurance, a term plan, is one of the best investment options you can avail. Moreover, the additional financial coverage offered by term insurance riders can help you rest assured and enhance your term plan as per your requirements.
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