What is a Term Insurance Plan?

What is a Term Insurance Plan

Term Insurance plan is the most comprehensive form of financial protection. It will help your family meet their financial needs from household expenses to rentals in your absence. When you consider buying a term plan, you have to make an educated choice about the life cover you select. There are some important things you need to keep in mind when deciding the term plan and life cover you opt for. The cover should help your family maintain their lifestyle, inflation should be kept in account and lastly, it should take care of your existing liabilities preventing the worries of EMI repayments.

Useful Features of Term Insurance Plans:

Cover for Death, Diseases and Disability: If you are the earning member in your family, have you thought about how your family will manage their finances if you were to die. A Term Insurance plan can help you ensure a worry-free future for your family by providing a high life insurance cover for a very small premium. For eg. A 30 year old, non-smoker, male would need to pay just Rs. 1,121 monthly (including GST) to provide a term insurance cover of Rs 1 Cr. for the next 50 years.

Cover Duration: You will get cover until you are 85. You will not have to pay till then. You only pay until 60. You relax for the next 25 years while it takes care of you.

Peace of Mind: When you have illnesses, accidents and disabilities covered which are three of the top reasons of death, you have the peace of mind that your dependents can lead a normal life even after you leave them finally.

Claim Paid Ratio: Max’s Online Term Plan has the reputation of paying over 95 percent of the claims. You should consider this feature when choosing other insurance providers.Death or illness of primary breadwinner can derail a family's lifestyle and future,Max Life Online Term Plan, provides financial support to the family in case of emergency. It makes more sense to get a term plan with critical illness cover than just buying health insurance that pays for your medical bills later.

How to Buy Term Plan Online?

Buying the term plan online is easy:

Step 1: Estimate your premium:- The first step of buying the term cover online is to use the online term insurance calculator and estimate the premium for your desired cover.
Note: The ideal benefit amount for your term life insurance should be 20 to 25 times of your annual take home income.

Step 2: Add Riders:- Select the add on benefits to the base cover. The additional benefits enhance your financial support in case of unfortunate events like disability and diagnosis of life threatening illnesses.

You can add the following four riders to your online term insurance plan:

  • Critical illness cover covering up to 40 illnesses
  • Cancer insurance cover covering all stages of cancer
  • Accidental death and disability benefit
  • Premium waiver benefit in case of diagnosis of critical illness or disability

Step 3: Pay the Premium:- Once you are satisfied with the benefits and the premium amount you can complete personal information and pay the premium.

You need to fill the following information and pay the premium:

  • Income, profession and education details
  • Details about the nominee
  • Present Address (your medical test will be conducted in the location of this address)

You can pay the premium online using debit or credit card.

Step 4: Complete the Proposal Form:- The proposal form is the detailed version of the application form for life insurance. It focuses on the information related to your life which can affect the claim in future.

The important areas of a proposal form will include:

  • Details of profession
  • History of Health issues (including that of the immediate family and parents)
  • Hobbies and lifestyle habits such as drinking and smoking

Step 5: Medical Tests:- After successful completion of the proposal form and submission of all necessary documents, you will be prompted about the medical test if needed.

Who Should Buy Term Insurance?

Anyone who is earning should buy a term insurance plan. Though it is not necessary to acquire a family before your buy the term plan,term plan is essential if you have financial dependents.
From eligibility perspective a person aged 18 years can buy a term plan. Maximum entry age may vary from one insurer to the other. With Max Life the maximum age to buy the term plan is 65 years.

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