Term life insurance vs. permanent life insurance: Is cash value the best value?
The main differences between permanent and term life insurance is that term life insurance covers you relatively inexpensively for a set period; permanent life insurance covers you at a much higher cost for the remainder of your life and it has cash value. Which one is better for you?
Term life insurance: What you need to know
People often think life insurance is too expensive or they can't afford it. However, you can get term life insurance for less than $1 a day. Here's what you need to know about term life.
Whole life insurance: What you need to know
Whole life insurance coverage lasts as long as you pay the premiums. It costs more than term life insurance, but it also accrues cash value.
3 types of insurance to pay funeral cost
What is funeral insurance and what are some tips for purchasing it? Is final expense insurance the same thing?
Accidental death and dismemberment insurance (AD&D)
Accidental death and dismemberment insurance (AD&D) sounds like a low-cost boost to life insurance. Is it worth the money, or should you simply buy more life insurance?
Know More About Life insurance
- Term Life insurance provides coverage for a fixed period of time at a fixed premium rate.
- In case of untimely death of the life insured during the policy term , the nominee of the life insured gets the Total Payout/Benefit. The benefit can be paid out as a lump sum payout or a combination of Lump sum & Monthly payout or only as a Monthly payout.
- Therefore Term insurance plans are said to be pure protection plans which ensure financial stability of the dependants in case of untimely death of the life insured.
Benefits of Term Life Insurance
- Death Benefit: In the unfortunate event of death of life insured during policy term, the nominee shall receive the Total Payout as a Lump sum amount or a combination of Lump sum & Monthly amount.
Lump sum amount to take care of immediate financial liabilities. - Monthly income to sustain the family lifestyle.
- Tax Benefit: The premiums paid for Term Life Insurance are Tax free under section 80(C).
- Rider Benefits: Riders are an important addition to the basic plan offering & provide an option to customize the coverage to the life insured.
- Accidental Death Benefit rider offers an additional sum assured over the base plan offering in case death occurs due to an accident.
- Accidental Disability rider offers an immediate lump sum payment on occurrence of any disability due to an accident.
- Critical Illness rider offers an additional sum assured over the base plan offering if the life insured is diagnosed with one of the critical illnesses mentioned in the rider.
- Waiver of Premium rider offers the waiver of all policy premiums in case the life insured is diagnosed permanent disability or critical illness.
- Option to increase Death benefit: Certain plans have offerings where the life insured can increase the life cover at key stages in life like marriage , birth of child.
Key Terms when comparing Term Life insurance plans
- Total Payout of each plan
- Premium amount paid for desired Total Payout
- Policy term offered
- High claim settlement ratio
- Riders offered with the plan