Term Insurance is a policy which stabilizes security to one’s family in their absence. The insured has to pay a certain amount of premium from time to time. This policy provides financial protection to his/her family with other returns in the insured’s death.
This insurance can be taken up to provide security to the insured’s family in death and uncertain events. Term insurance is a type of life insurance that secures the insured’s family and covers up the chances of risk and failing in fulfilling financial responsibilities. In case of accidental death and end of the term period, additional returns are provided to the insured or the insured’s family.
Looking at the financial payments, dependants, and liabilities, one can decide what plan they want to choose with the period. Considering the years and age of insured etc. he/she can opt for a plan that best suits their future family requirements.
What is term insurance, and how does it benefit the life of an individual?
Term insurance is a life insurance policy where the insurer provides credit at the end of maturity term to the insured or their family. It is a contract between the insured and the insurer where the insured has to pay premiums regularly, and the insurer provides extra financial credit in return. This policy can range from 10 to 30 years, depending upon when the person is applying for it.
In this policy, the premiums can be paid monthly, quarterly, etc., the premiums are affordable and flexible to pay in particular periods set according to the contract. It comes with additional tax benefits and reasonable prices when it comes to purchasing the policy. In case of accidental death or early death, the insured’s family can claim the plan’s death benefits.
- Secure future for the family of insured
- Covers up the loss in the absence of insured
- Acts as a contributing factor in fulfilling financial responsibilities.
- Provides benefits to the family of insured
- Provides tax benefits
- Allows to take up more than one term insurance
- Guaranteed death benefit
- Critical illness coverage
- Additional riders
- Flexible payment of premium
Things to consider before buying a term plan in India.
- Current loans and other insurance policies
- Current income and expected future income
- Age of retirement
- Duration of term plan
- Benefits from the term plan (death benefits, tax benefits, etc.)
Additional benefits at the end of the term
- Current expenses and expenses for the future
- Expenses for major events like weddings, education, medical costs, etc.
- The amount of premium and how they should be paid.
The period between each premium:
- Number of years before the maturity period
- Mode for payout
- Growing dependants
- Growing financial responsibilities
- Liabilities to be paid off
- Securing future health conditions
- Other financial responsibilities
Types of term insurances:
- Level term plans:
In this policy, the premium remains intact throughout the maturity period and even at the time of maturity. It doesn’t add any additional payments/ credit. This policy is suitable for those who prefer simple insurance without any frills. It is considered as the most common policy taken up by people.
- Increasing term plans:
In this policy, the premium keeps increasing from time to time, along with the sum assured. People who guess that their expenses and financial responsibilities keep increasing from time to time prefer this policy.
- Decreasing term plans:
In this policy, the sum assured keeps decreasing from time to time. People who have less financial responsibilities prefer this policy or those who have less or no dependants prefer this plan.
- Return of premium plan:
In this policy, if the customer outlives the policy term, they are paid with all their premiums at the time of maturity. It is considered to be the most profitable as all the money is returned along with additional benefits.
Can term insurance be claimed from two companies?
Yes, it is legal to claim term insurance or any life insurance policy from 2 companies. An individual can buy insurance from 2 companies and make regular payments to secure their financial responsibilities in the future. The individual can choose both the policies from different companies and decide the premiums as per his/her convenience.
Both the policies don’t have to be the same as any term insurance can be chosen from the options provided by each company.
It is better to have two insurance policies to secure one’s family’s future and responsibilities. Term insurance allows for avoiding risk or loss at one’s absence. Taking two-term insurances will help in securing death benefits and other financial requirements. It gives extra protection to the insured’s family.
The insurances taken by an individual can be planned after considering the daily and routine expenses/payments. Both insurances don’t have to be the same. The premium/returns can be adjusted according to one’s income capacity. Both the insurance contracts will be valid, and one insurer will not have the right to intervene with the other company/insurer. However, it is best to disclose all the material facts so that the insurer can help the customer.
The insured has to inform the insurer of previous and other current insurances to avoid conflict or loss to claim the insurance without any loss.
How will claiming term insurance from 2 companies help an individual?
There are multiple benefits for claiming two insurances. An individual can provide assured safety to their family after their death—big responsibilities like marriage, education of children, clearing up loans, purchasing a house, etc.
By taking up two-term insurance policies, one can cover their health expenses that might occur. In case, there are no health conditions; the additional amount can be saved for future purposes. In both ways, the credit is at an advantage to the insured.
There will also be an additional death benefit from both the companies to the family of the insured. There will be other returns or full return of premium at the end of the term period, which will greatly benefit the family of the insured. Each policy can be planned as per the difference in term period. For example, one policy of 10 years can be up to 20 lakhs, and another policy of 3 years can be of 70 lakhs.
Canara HSBC Oriental Bank Of Commerce Life Insurance offers term insurance policies which are of good benefits. The company provides life insurances as the best form of investment. The customers can check with the term insurance policies and their benefits and their comfortable payments and payouts.
The term insurances here have additional death and tax benefits and long term health expenses covering the multiple plans available with each having their benefits. There is also accidental death coverage. Claiming two insurances can secure the dependants of the insured. Children, grandchildren and financial responsibilities related to them can be covered. In the case of critical illness, the expenses can be paid without having to struggle for credit.
The Canara HSBC Oriental Bank Of Commerce Life Insurance offers term insurances online, and their in-depth knowledge in insurances brings out the best plans for investing and insuring credit. You can take up a plan online by visiting the website, i.e., www.canarahsbclife.com. After going through all the plans and filling in your details, the customer can immediately get started with the plan and pay premiums online. The customer can select the premiums and periods online and go through the benefits of the plan.