Future Generali Term Insurance Plans
Term insurance can be defined as an inexpensive insurance plan that offers complete protection and financial security of your dependents in case of any unforeseen circumstances. Term insurance provides financial coverage to the policyholder for a certain period.
Term insurance is a type of Life/Risk cover, which provides financial coverage to the dependents of the insured person for a defined period of time. In the absence of the insured person during the during the policy term, then death benefit is payable to the nominee.
What is the meaning of Term Insurance?
Term Insurance is the type of Life Insurance. If death occurs of the policyholder during the policy period, then his/her nominee will receive the Sum Assured selected. If policyholder survives until the end of the policy period, then he/she will not receive any maturity amount.
This is the reason, these policies cost you very less and cover a large amount of life risk. This is the PURE LIFE INSURANCE. Hence, anyone who has financial dependents must buy this product immediately.
Key Features of Term Insurance Plan:
Sum Assured -the Sum assured is the amount that is payable to nominees after one’s demise.
Entry Age– A person of 18 to 65 years age bracket are eligible to buy a term insurance cover.
Maturity Age– The age at which the policy gets expires is called as maturity age.
Tenure– For instance, if a person of 50 years of age wants a term plan with a maturity age of 80 years, then that person will have a tenure of 30 years. The tenure of a term life insurance plan may range from 10 to 40 years.
Claims Settlement Ratio– If one seeks a term life insurance cover, then one must ensure that they are buying it from an insurer who is offering a higher claim settlement ratio.
Riders’ insurance– For instance, if one buys a term plan with an accidental death rider. It may pay Rs. 50 lakhs in case of death and an additional amount of Rs. 25 lakhs will be paid if the demise has been caused due to an accident.
Health Checks– The insurer can ask to undergo a health test if one applies at a certain age or need a high insurance cover. For instance, if an applicant who has attained an age of 50 years, then they will have to go through a comprehensive health test including Urine sample test, blood sample test, and HIV test and etc.
Types of Term life insurance Plans:
Level Term Plan:
Level term plan is a basic plan. The insurer pays the sum assured at the demise of the insured.
Increasing or decreasing term plans:
The sum assured is increased or decreased based according to a specified percentage each year.
Monthly Income Plans:
Despite the fact that, the sum assured by many of the term plans is paid in a lump sum as a death benefit. But the sum assured is paid in monthly installments under the monthly income plan.
- A level premium term which can be level for 5, 10, 15, 20, 25 and 30 years
- Yearly Renewable Term which increases in cost every year
- Declining Balance term (sometimes used to cover the contingency of death during the term of a mortgage or other financial obligation
What are the advantages of online Term Insurance Plans?
Nowadays all Life Insurance companies offer you online term insurance plans. The advantages of online term plans are as below.
# It is convenient to buy as with the click of a button you can buy it.
# As there will not be any middlemen involved, the price is cheap than offline term insurance plans.
# You fill the proposal form on your own. Hence, an error of margin is LESS.
# Undue influence by agents is not there.
# Along with the discount of DIRECT purchase, if you buy through online then now life insurance companies will give you 8% on your FIRST YEAR PREMIUM. This is to promote cashless online transactions.
Need For Term Insurance:
Life is uncertain, anything can happen to you at any time. So you should keep yourself physically and financially strong to avoid any unforeseen circumstances. For financial security of your family, term plan plays an important role. In a term insurance plan, a fixed amount i.e. a sum assured is given to the nominee in case of death of the policyholder during the policy term. If you survive a policy term then no monetary benefit will be given to you. Below are the few points which help you to know the importance of term plan.
Large Life Cover:
How much term insurance you will get totally depends on your annual income. For a person of a yearly income of 5 lac can get a life cover of 1 crore at a very nominal yearly premium. You should go for at least sum assured of approx. 10 times of your current annual income to maintain the living standard in your absence.
No dependency on debts:
In your absence, your family should able to handle all the expenses and EMI. Term insurance can help them to maintain their financial stability.
Under Section 80(C) insurance premium is currently exempt up to Rs. 1,50,000. Also, when the sum assured is received by the family, there is a tax relief under Section 10(D) of the Income Tax Act.
While looking for a term insurance plan and term policy, one of the major points to consider is claim settlement ratio. Claim Settlement ratio of a company informs you about the number of policies that are settled by paying back the claims in case of death.
We will pay all death claims within 10 working days of receipt of all claim documents/ information. We shall pay interest @ 6% p.a. for any delays.
We ensure payment of all death claims for policies having completed 3 continuous years.
Advance account value payout
We will pay fund value of all Unit Linked policies within two working days of claim Intimation.
We assign a dedicated Claims Relationship Officer for all death claims
As long as you understand that term insurance is temporary insurance and that the rates will increase over time. The “best term insurance plan” is really the one that suits your particular needs.
If you are in the market for term insurance here are a few things that will help you.
- Make sure that your term insurance plan is renewable and convertible. These are really good features to have especially if you develop health issues in the future. You would be able to convert your term insurance to permanent insurance without the need to undergo new medical underwriting.
- Get an insurance broker or agent to help you ‘shop’ the market. This ensures that you will get the best rates.
- Stick with the top 5 insurance carriers in your state/province. They are usually financially stable and have good claims paying track record.
- I hope this was helpful. All the best to you!