Skip to main content

Find Right Term Plan

When you buy a term insurance plan, keep the needs and financial acumen of the insurance beneficiaries in mind as it is for them that you are buying the term plan, not for yourself


If you are in the market for life insurance, a term insurance policy is the cheapest product to buy. And to add convenience to your buying experience, most insurers now also offer it online. Term plans have gained some traction with the online platform, and as with everything else, gaining popularity has led to more innovations.


The straightforward structure of a term plan-the nominee gets a sum assured on death of the policyholder during the policy term and nothing if policyholder survives the term-is not the norm but just a variant nowadays. There is a lot of customisation in the way insurance money can be given to the nominee. Now, the nominee can get: periodic income for a fixed number of years instead of a lump sum, a combination of lump sum and income, or even a periodic income that increases regularly to keep pace with your needs in the future. Then there are plans that offer payouts if the policyholder contracts a terminal illness, while some customize the policy with an inbuilt personal accident cover too. So, how do you choose from the different options available?


Lump sum or income
The choice between a lump sum and a staggered benefit option should entirely depend on your circumstances and nominees. You need to account for your debts, financial goals and your family members. So, if your spouse is financially clued in, a lump sum benefit works well, else the staggered benefit option is better. Even then, some lump sum is needed as a buffer until the family stabilises. Someone with debt can look at a higher component of lump sum benefit


The good thing is, some plans allow you to customise the death benefit to offer part lump sum and part periodic payments. You should also consider plans that increase your sum assured automatically at milestone events such as having children, without even asking for medicals. This takes care of increased insurance needs


Then there are income replacement plans. Unlike the staggered option that breaks the sum assured to pay a fixed sum for a fixed number of years, income replacement plans offer periodic income until a goal is reached. So, if it is linked to retirement then upon death of the policyholder, the beneficiary gets periodic income till the retirement age of the policyholder. If the policyholder dies closer to retirement, the sum total of pay-outs reduces. Carefully consider your liabilities and goals before buying this plan. For someone with a heavy debt, this may not be the best choice.


Terminal illness cover
Term plans have also started paying the sum assured, or a portion of it, if the policyholder contracts a terminal illness. But, according to Bondia, this is not a feature that should swing your decision. Insurers will insist on a doctor's certificate that the policyholder is terminally ill. The insurer will then carry out its own investigation. The process may not be smooth. If you have a critical illness policy, you don't really need to worry as critical illness would cover a wide range of ailments including terminal illnesses and would also act as an income supplement.


Even the policies that build in personal accident covers should be considered carefully. A stand-alone personal accident policy is not only more comprehensive, as it also takes care of temporary total disability, but is also cheaper


The choices are aplenty, but keep it simple. The market has a lot of product variants as insurers want to go beyond price differential to attract customers. But the choice really boils down to choosing between lump sum and periodic payment plans. If your claimant can't handle a lump sum payment, and you need to ensure an income stream, go for a plan that allows you to stagger a high proportion of the sum assured


Innovation in a term plan is a good thing, but to make the right decisions, approach the product from the point of view of your beneficiary.





Invest Rs 1,50,000 and Save Tax upto Rs 46,350 under Section 80C. Get Great Returns by Investing in Best Performing ELSS Funds

Top 10 Tax Saver Mutual Funds for 2018

Best 10 ELSS Mutual Funds to invest in India for 2018

1. DSP BlackRock Tax Saver Fund

2. Invesco India Tax Plan

3. Tata India Tax Savings Fund

4. ICICI Prudential Long Term Equity Fund

5. Birla Sun Life Tax Relief 96

6. Franklin India TaxShield 

7. Reliance Tax Saver (ELSS) Fund

8. BNP Paribas Long Term Equity Fund

9. Axis Tax Saver Fund

10. Birla Sun Life Tax Plan



Invest in Best Performing 2018 Tax Saver Mutual Funds Online

Invest Best Tax Saver Mutual Funds Online

Download Top Tax Saver Mutual Funds Application Forms


For further information contact SaveTaxGetRich on 94 8300 8300

------------------------------------

Leave your comment with mail ID and we will answer them

OR

You can write to us at

Invest [at] SaveTaxGetRich [dot] Com

OR

Call us on 94 8300 8300


Popular posts from this blog

ICICI Pru Mutual Fund Dividend

ICICI Prudential Mutual Fund has announced dividend under the following schemes: Scheme Dividend ( Rs /unit) ICICI Pru Capital Protection Oriented Ser V Plan B-D 0.03611325 ICICI Pru Capital Protection Oriented Ser V Plan B Direct-D 0.03611325 ICICI Pru Balanced Advantage Direct-DM 0.06 The record date has been fixed as February 08, 2017. ------------------------------ ------ Invest Rs 1,50,000 and Save Tax upto Rs 46,350 under Section 80C. Get Great Returns by Investing in Best Performing ELSS Funds Top 4 Tax Saver Mutual Funds for 2017 - 2018 Best 4 ELSS Mutual Funds to invest in India for 2017 1. DSP BlackRock Tax Saver Fund 2. Invesco India Tax Plan 3. Tata India Tax Savings Fund 4. BNP Paribas Long Term Equity Fund Invest in Best Performing 2017 Tax Saver Mutual Funds Online Invest Best Tax Saver Mutual Funds Online Download Top Tax Saver Mutual Funds  Application Forms For further information contact  SaveTaxGetRich on 94 8300 8300 ------------------------------ ------ Leave y...

What is Financial Freedom?

Invest In Tax Saving Mutual Funds Online Download Tax Saving Mutual Fund Application Forms Buy Gold Mutual Funds Call 0 94 8300 8300 (India)     There were many things common between our Freedom fighters. All had the Single vision (Free India), common goal (independence) and had a disciplined and focused approach. They were ready to do anything and everything and had made so many sacrifices to see India free . But the road to freedom was not easy .They had faced lot many hardships, went to jail so many times and even confronted physical and mental torture from the British. There was one more thing which proved to be an advantage to our fighters that most of them were professional lawyers. The knowledge of legal issues and its impact on our country at large has helped them counter various bills and proposed new laws by the then government. It is due to their continuous effort that we are able to achieve the goal of Independent Indi...

Hidden Bank Fees

  What Banks Hide From Customers Imagine after a peaceful and exciting holiday you receive your bank statement with steep charges. You then rush to your bank and start confronting staff members and to your dismay, you come to know that the high end debit card was charged very heavily. Wouldn't this cause damage to your finances? So remember, the world outside is full of deceptive and double cheating people. Unethical practices are always used by company sales person in order to meet the target. Credit card companies, mutual funds and bank institutions always play dirty tricks to lure customers and the practices are rampant. So here's how you should be careful while dealing with your banks: High End Debit Card Charges While opening an account with a bank you opt for a debit card with minimal charges. But later on when you upgrade your card and opt for high end debit card the annual charge rise by a good amount. Though such a card has slew of features but it all comes at a high ...

Partial withdrawal from PPF

  Public Provident Fund (PPF) account has a lock in period   If you opened a PPF account to meet your retirement needs,, think twice about withdrawing from this fund before retirement. But provided it's an emergency here are the rules. Public Provident Fund (PPF) account has a lock in period before which you cannot withdraw your money.   The partial withdrawal is allowed after the completion of 6 financial years . This means that you will be allowed a partial withdrawal from 1 April 2017. The maximum partial withdrawal allowed is the least of the following: 50 percent of the account balance at the end of fourth financial year, 31 March 15 50 percent of the account balance of the end of previous financial year, 31 March 17.   There's a loan option available on your PPF account between the fourth and the sixth financial year. You can obtain a loan of up to 25 per cent of the balance in your account. However, this will attract interest of 2 percent more than the prevailing ...

Updating a minor PAN card upon becoming adults

  Updating a minor's PAN card once they become adults A PAN card issued in the name of a minor does not contain the minor's photograph or signature, and therefore, cannot be used as a valid proof of identity. Once a minor PAN card holder turns 18, the relevant changes must be made in the PAN records. A new card is then issued bearing a photograph and signature. Application The applicant is required to fill up the "Request for new PAN card andor changes or correction in PAN data" form. The form can be filled up online by accessing NSDL's Tax Information Network website and clicking on the online PAN application tab. Information The applicant must mention the existing PAN number in the application and check the `photo mismatch' and `signature mismatch' boxes, and submit the online form. The form must also be printed out, signed by the applicant, and submitted along with two photographs. Documents Identity and address proof in the form of a copy of the app...
Related Posts Plugin for WordPress, Blogger...
Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now