The insurance coverage for Indians is still lower than it needs to be. The main factor to blame for this is the lack of awareness among people regarding the need for insurance and the type of insurance they should buy. In this regard, a term insurance plan would be a good choice for most people. It comes with a host of benefits and features that make it the right choice. Read on to know all about those features and benefits.
Higher coverage at the cheapest premiums
You can calculate term insurance premium from the official website of your bank, and that will tell you how you can get the highest coverage at the cheapest premiums. In fact, this is one of the factors that make term insurance so popular among people. It is one of the most affordable plans in terms of paying the premiums and offers higher coverage than most other insurance options you have.
Forming a contingency fund for the family
If you are the sole breadwinner for the family, then it makes all the more sense for you to calculate term insurance premium and get a policy. In case of your untimely demise, the family should not be left struggling to make the ends meet.
A term insurance plan can be a huge help in this scenario. It will not only help your family meet their day-to-day expenses but also ensure that any of your impending debts are fully paid off.
Choosing a way to receive the benefits
The death benefits from the policy can be received in any way that seems suitable. For instance, the benefits can be received as a fixed payment every month until a certain time period. Or, the entire benefit can be received as one lump sum amount.
Finally, the benefits can be separated into a lump sum and fixed monthly payments. The idea is to choose a payment avenue that meets the immediate and future needs the best.
Offers you the much-needed peace of mind
The best gift you get from buying a term plan is peace of mind. You can be assured that your family has the financial security to continue their present lifestyle even in your absence.
If you take the right riders, then you can even get the premiums waived off in case of a loss of income due to accidents. Furthermore, you can have peace of mind by knowing that your current debts from loans and EMIs will not fall on your family’s shoulders in your absence. They can use the money from the death benefits to pay those off.
Low chances of claim rejection
With a term plan, the chances of claim rejection are extremely low. Of course, you should check the claim approval rate of the insurer beforehand. If you have chosen a well-reputed insurer with a high claim settlement ratio, then you can be assured that the claim will not be rejected. Also, as per the Insurance Amendment Act 2015, all claims made right after the initial three years of the policy are mandatorily honored by the insurer. So, your family’s future is secure – just the way you wanted it to be.
And that’s all! A term plan is an absolute must-buy for all the reasons mentioned above. So, did you talk to your insurer yet?
Visit here to know more about Kotak Life Term Insurance Plan: https://www.kotaklife.com/online-plans/online-term-insurance-plans