You must have heard about term insurance plans. Do you know the what, why, how of it? Should one go for insurance agents, or buy online?
Let us demystify it for you here:
All about Life Insurance
Life insurance is an amount a person has invested, that will be paid out to his survivors on his death or after a certain age, preferably 75 years of age. Life insurance is support and financial protection provided to the grieving family in times of death of the person insured.
Benefits of Life Insurance
- Life insurance plans help in saving your tax with maximum tax benefits
- It helps pay for all major accidents and illnesses
- You can apply for loans with your policy
- You can cover your personal expenses through the money received from the policy
- You can support your family and provide for their needs
How much Life Insurance can a person expect?
The amount of life insurance to be paid by a policyholder is determined by factors like their age, gender, lifestyles preferences, family history of illness and the duration of their insurance.
It also depends on things like the number of dependents in their family, other investments, savings and liabilities.
All About Term Insurance
Term insurance is a cheaper variant of a life insurance plan. The payout for a term insurance is at the death of the policyholder. The amount can either be paid out in lump sum or monthly manner. This insurance is done for a fixed term within a set period of time.
A term insurance helps look after the liabilities of the policyholder, that his/her family may have to undertake on the death of the policyholder. More importantly, it helps protect and safeguard their family against any unforeseen circumstances.
Benefits of a Term Insurance Plan
- A term insurance plan provides secondary income incase of disability or severe illness
- Along with the assured sum, you get an additional sum incase of unforeseen circumstances like the death of the policyholder.
- It helps provide a lump sum amount to the family of the policyholder, in the event of their demise
Popular Term Insurance Schemes
|Term Insurance Plan||Age of Entry||Age of Maturity||Assured Sum||Ratio of Settlement|
|LIC eTerm||18 years to 60 years||75 years||Rs. 25 Lakhs||98.19%|
|SBI Life eShield||18 years to 65 years||70 years||Rs. 20 Lakhs||95.70%|
|Aegon Life iTerm||18 years to 65 years||80 years||Rs. 25 Lakhs||95.30%|
|Kotak Preferred Term||18 years to 65 years||75 years||Rs. 25 Lakhs||94.08%|
|Max Life||18 years to 60 years||75 years||Rs. 25 Lakhs||96.23%|
|Bajaj Alliance iSecure||18 years to 60 years||70 years||Rs. 25 Lakhs||91.30%|
This brings us to the next query about where to purchase the life insurance from.
There are many options, like online payment or buying an insurance plan from a certified agent.
Who is an Insurance Agent?
A person who represents an insurance company and who sells insurance policies and plans for the same company is an insurance agent. There are two types of insurance agents, namely, independent agents and exclusive agents.
Why choose an insurance agent?
When you choose an insurance, the agent becomes your personal shopper to help you decide which plan to opt for, your advisor, and a link between the insurance company and you.
Benefits of buying from an insurance agent
- You get a facilitator who will share your problems directly with the company
- The insurance agent will help you choose and provides a tailor made plan that specially suits your needs
- You may gain extra benefits on the insurance plan that are available only through insurance agents
- An insurance agent helps you select your mode of payment and guide you on the best mode
- Is like a financial guide who will help you when you need to encash your policy in a safer manner
- An insurance agent will help you identify the risks, the benefits and help you choose the most beneficial plan
In conclusion, it is safer to stick to a term insurance plan or a life insurance plan if you want protection for the members of your family. Additionally, if you’re confused about any conditions or the workings of a plan, an insurance agent will be your best guide.