Pure term insurance plans have always been smart in terms of their cost-effectiveness. They are low-cost and high sum-assured insurance plans. You can get term insurance cover for a big amount at low premiums and attain tax benefits up to Rs. 1.5 Lakh under Section 80C. It also cannot exceed 10% of the sum assured. Also, term insurance plans are the first step towards financial security. In case of the unfortunate demise of the policyholder during the policy term, the family gets the amount equal to the life insurance cover. The idea is that you should be able to provide your family/dependents in your absence, and your investments does not suffice. So, if you do not want your beloved family members to compromise on their lifestyle, then a term insurance plan, with its ‘sum assured’ comes in handy.
As the name suggests, the term insurance plan is insurance that you get for a specific time period. This specific time period is a fixed number of years and the policy comes into effect only if the policyholder dies during that period. So, if you felt restricted by this earlier vanilla version of term insurance plans, then here’s some news:
- The newer versions of the term insurance plans can bring you benefits like money back on completion of the policy term. These plans are called the Term Insurance Plans with Return of Premium (or TROPs) - they offer financial protection to your family during the policy term and return all premiums paid by you at the end of the policy term.
- Apart from that, the feature of life stage cover can also align your term insurance plan with your life goals. It is understandable that the need and magnitude of life cover changes as you assume increasing responsibilities in life. PNB MetLife Mera Term Plan also offers the Life stage protection option by giving you the opportunity to buy an additional cover as per the prevailing age and premium without any medical examination upon certain events/circumstances. For instance, upon marriage, the additional cover could be equal to 50% of the original cover subject to a maximum of Rs. 5,000,000 and on the birth of your first and second child each, an additional cover equal to 25% of the original cover subject to a maximum of Rs. 2,500,000 can be introduced into your term insurance plan.
- Riders are another solid feature of term insurance plans today. Riders are also additional covers that you can choose to add to your life cover for more protection. You may opt for riders like accidental death cover, accidental disability cover, critical illness rider, along with your basic policy and shape your insurance policy to suit your individual needs, at a nominal premium.
To sum it up, the term insurance plans nowadays, bring you protection benefits, maturity benefits and tax benefits - all of it at a reasonably low premium. Moreover, these plans can now be bought online, without the involvement of any intermediary at all.