Term insurance in India is very affordable. You find many options when you go shopping for a term plan. However, you need to know the price-breakup and the cost of the different components of term insurance to understand your exact premium. Take a look at this article to get a better idea of how a term life insurance policy is priced and you will know what you are paying for.
Discounts and schemes of term insurance plan in India
When you buy a term plan, you are eligible to certain discounts. In most cases, a lower price is offered if:
- You are young: It is highly recommended for you to get your term insurance plan when you are young. Term plans are cheaper for younger people. This is because as a young person, you are healthier and fitter. You are also, in all probability, single. So you have very few familial responsibilities. All these factors make you a less risky customer and the insurance provider offers the term plan at a lower cost. Therefore, rather than waiting to get older, get your term plan now and save a lot of money on it.
- You are healthy: You can also expect to get your term plan if you are healthy and fit. A term plan is a form of life insurance; a plan that promises to pay a sum assured to your family if you die. When you are ill and your health is fragile or if you are smoker, you are considered to be a risky customer who is more likely to die as compared to a fit person. As a result, the term plan insurance premium is lower for healthier people. So if you are at the pink of your health now, get your term insurance cover right away.
These are some simple ways to get a discount on your term plan. Make use of them and get your term cover at a very reasonable cost.
Terms and conditions of term insurance plans in India
There are certain terms and conditions associated with term insurance. You must be well versed with these in order to get the maximum benefits out of your policy. Some of the common term insurance clauses include:
- Sum assured in return of premium: The sum assured in a term plan is only guaranteed as long as the premiums are paid on time. If you default on a premium and die thereafter, your family will not be able to make a claim as your policy will stand lapsed at that time.
- Exclusions: There are some very vital exclusions in term insurance. For example, death caused by suicide is not included under a term cover. So if a policyholder commits suicide, the nominees cannot make a claim. Then again, death caused by using banned substances such as drugs and narcotics is also excluded. Read the list of exclusions carefully before you buy your term insurance policy.
- Incorrect data entry: Almost every life insurance provider in India is very strict about the data you enter when applying for a term plan. If you make an error in the application form, voluntarily or involuntarily, it will be held against you at the time of a claim. In other words, your family may find the claim rejected. So, be absolutely sure about the data you enter and be as precise and truthful as you possibly could.
- Surrender clause: At any time during the policy period if you feel the plan is not suitable for you, or you find a better alternative, you can surrender your term insurance policy. Your policy will be cancelled and you will not have to pay any further premiums towards it.
These are some of the many terms and conditions of term insurance. It is absolutely crucial for you to go through the clauses minutely before you sign on the dotted lines of your term insurance policy document. So, if you compare the plans online through Coverfox, you can get the complete picture of the underlying clauses as well.
As you can clearly see from the points mentioned above, the costing and application of term insurance depends on factors related to an individual. You therefore, should be cautious about the plan you choose, the time at which you buy it, your health conditions and also be aware of the terms and conditions. All these factors collectively will ensure your term insurance plan’s proper functioning. Hence, without wasting any further time, go right ahead and start your research and then buy your ideal term insurance cover.