Term Plan

Term insurance plan is a form of life cover, it provides coverage for defined period of time, and if the insured expires during the term of the policy then death benefit is payable to nominee. Term plans are specifically designed to secure your family needs in case of death or uncertainty. It provides specific amount of coverage for specific period of time.

The premiums for Term insurance policies are the lowest among all the types of life insurance policies. The premiums are low since there is no investment component and the entire premium goes for covering the risk. So if the policy holder expires during the insured term, the death benefit is paid to the nominee. There is no survival or maturity benefit once the policy term expires. There may be some plans that offer to return the premiums paid by the policy holder if he survives.

To choose best term plan you should consider important factors like:

a) How good is the insurance company

b) How much cover do you need

c) Check the claim settlement ratio

d) The factors of inflation in paying the premium and coverage benefits

e) Compare the terms and conditions of various insurance companies

f) You can take two term insurance plans from two different insurance company, it will save you in case of rejection of claim from one of either two companies

g) Do not just look for the low term insurance plan as they might be an important factor but may have several conditions attached for the time of claim

h) You can also go for an online or offline term plan