Fear of life uncertainties and untoward events causes enough to buy life insurance. Having an accident or a severe illness in life can suddenly cause major economic trouble for your family. Life insurance protects your family at the same time. If life insurance exists when a home-earning member dies, you also get economic stability. Overall, life insurance provides economic security to your dependents on your death, which is given in a lump sum amount or regular installments as per the need.
Due to an increase in liabilities in life and dependents, people have now been forced to invest in term plans. The people who buy this cover are those who are child-child or have taken a loan. Most importantly, the term plan is the only insurance policy that you must buy because it gives you a big coverage at a meager price. Now you can buy term insurance up to the age of 99+ years, which was not possible until a few years ago.
Regular Term Plan:
A pure term insurance plan is one that provides coverage for a period of a prior few years. This period can be anything between 5 and 45 years. In this plan, the policyholder's nominee has the right to get the main plan benefit, i.e., the sum assured, which is given on the policyholder's death during the policy period. But there is no rule in this plan to give any maturity amount. This means that if the policyholder survives on the plan's expiry, he will not get any benefit. A pure life insurance plan is one that provides the benefit of sum assured on the death of the policyholder during the term of the plan (i.e., lifetime). As in its name, the pure insurance plan provides a person with complete insurance coverage throughout his life.
Term Insurance Plan does not have any economic cash value and is a general insurance plan that only offers a death benefit to the policyholder. The big advantage of pure term insurance is that it is the most economical price insurance product available in the market. It gives you the advantage of getting coverage up to the policy term with a fixed rate of premium.
Term Insurance - Return of Premium:
It is a popular option that comes with term insurance. Return of Premium (ROP) insurance means that all the premiums you pay are returned to you as maturity benefit. As a policy customer, you can choose the term of the policy as per your needs. In general, Indian customers expect some returns from life insurance policies, even if it is the amount of premium paid by them. ROP is a money-charging policy for investors who expect more returns. As an investor, you can decide the term or term of the policy according to your economic status. Usually, this policy is available for 20, 25, 30, and 40 years. For example, if you have taken a 20 years loan, you can buy a term life plan of 20 years duration. If you get something done during the policy term, you will not have to worry about your loan. If you survive after the policy term, you will get back 100% of all the paid premiums.
The maturity or survival benefits of a premium plan return are quite different from the normal term policy. In an ROP plan, the policyholder gets the same premium back as the number of years in the insurance cover. There are also a number of plans in which the insurance company pays more than the total amount of premium paid by the customer, but the policyholder will have to meet certain conditions. Further, the entire maturity amount to the policyholder is tax-free.
Premium Payment:
Insurance companies have introduced various options for premium payment for the convenience of the customers. Now you can choose a convenient payment option according to your economic situation. Standard premium payment options currently in the market include annual, half-yearly, quarterly, and monthly payment options. Some insurance companies also give a single premium payment option in which you can pay the premium at a time for the entire term of the policy.
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