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There are many term insurance benefits that make it an excellent investment to secure the financial safety of your family.
The sum assured under term insurance online is paid out in case of death of policyholder to the appointed nominee.
Non linked plan
A term plan’s sum assured is not linked to any market factors.
Most insurance companies require a mandatory medical tests as per their risk assessment criteria before issuing the insurance policy. Some companies have started offering tele medical checkups.
Term insurance riders
A policyholder can opt for riders that provide additional coverage. Some of the common riders are:
A typical term life insurance policy tenure starts at certain age of the policyholder and continues till the age up to which the life insured needs life protection. There are many plans in the market that provide “whole life protection” at reasonable premiums.
Free look period
Term insurance policies have a free look period of 30 days/15 days. This means the policyholder can choose to purchase life protection; however if he decides to cancel the policy within 30 days & policyholder is offered a full refund.
A term insurance policy has a grace period of 15 to 30 days. In case a policyholder is late with payment of premium, the insurance company allows the policyholder to pay premiums within the grace period without the policy lapsing. If premium is not paid within this period, the term insurance policy lapses.
Term insurance plan is extremely important to secure the financial security of your family. A term life insurance policy provides a high sum assured which can be used by the family.
Here are some pointers to consider before choosing the perfect term insurance policy:
The insurance company calculates premium for your insurance policy based on several factors such as:
Getting an online term plan is extremely simple in these digital times. Most insurance companies have their plans set up online which makes it easy to check. But why should one buy term insurance online?
The documents you require are:
There are a variety of insurance products that can help you financially secure your life. A term life insurance is the simplest and the most basic type of insurance. It guarantees the payment of a death benefit in case the insured passes away during the policy term. A term life insurance plan generally does not have any savings component, which makes it one of the cheapest life insurance plans. A term life insurance cover ceases to exist after the expiration of the policy tenure. Some term life insurance plans also offer ‘riders’ which handily provide the policyholder enhanced coverage at a low cost.
Being an earning member of your family, it is important to financially protect your loved ones even in your absence. A best term insurance plan guarantees payment of an assured sum, which can be of immense help for your family in times of need. A term life insurance plan is important for a variety of reasons.
In case of an unfortunate event, if the need arises, it is exceptionally easy to file an insurance claim. There are three distinct steps to filing a term insurance claim.
Term insurance is essentially an agreement between the insured and the insurance company. The insurance company promises to pay the insured a pre-decided death benefit on the condition that he/she regularly pays a mutually decided premium. The insurance company uses the premium to provide the death benefit. Insurers very often provide flexibility in premium payments. Generally, term insurance premiums can be paid on a monthly or yearly basis.
A term insurance plan takes into account the potential risks to the insured and the premium is calculated accordingly. A high-risk individual will have to pay a higher premium when compared to an individual with moderate risk. Risk can be of various types; for instance, occupational risk. Nicotine use is also a type of risk. Continuous use of nicotine can result in respiratory illness, heart diseases or even cancer. Since many term insurance plans cover critical illness, heart diseases and cancer, insurers naturally charge a higher premium from nicotine users. While buying a term insurance plan online, you have to clearly state your history of nicotine use. If an individual is a nicotine user, his/her premiums maybe a third higher than a non-user. Concealing nicotine use while buying a term insurance plan could lead to the rejection of the claim.
A term insurance policy guarantees monetary payout to the nominee in the event of the insured’s death. Besides the death benefit, term insurance plans generally do not provide other monetary benefits. However, you can claim tax benefits on the premiums paid for a term insurance policy. The premiums paid for yourself, your spouse and children are eligible for a tax deduction of up to Rs 1.5 lakh in a year under Section 80C of the Income Tax Act, 1961. Some best term insurance plans also return the premiums paid after the end of the policy term.
Term insurance policies come in varied types. Basic plans offer a death benefit, while policies with riders also cover accidental death, disability, cancer, heart diseases and other critical diseases. The exact specification of the term insurance policy depends on the financial needs of the individual. PNB MetLife offers a plethora of term insurance plans catering to people with varied needs. You can choose from
Buying a term insurance plan with a Sum Assured which is significantly more than you need can be a drain on your finances. Similarly, being underinsured can be counterproductive. The optimum cover depends on your annual income, liabilities and your financial goal. As a thumb rule, you should have a term insurance cover equal to 15-20 times your annual income. To get a better idea of the required term insurance cover, you can use the ‘protection calculator’ in the ‘tools’ section of www.pnbmetlife.com.
If the insured does not die within the policy tenure of a term insurance plan, the policy simply ceases to exist. Term insurance policies do not have a savings component and hence there are no maturity benefits. The insured can also choose to renew the plan. Policies with the ‘return of the premium’ clause pay back the premiums paid during the policy term.
Term insurance plans pay the sum assured in the event of the death of the insured. However, people seeking better coverage can opt for riders, which essentially enhances the basic policy. You have to specifically opt for such riders while buying the policy. Term insurance policies with riders have higher premiums when compared to basic policies. Some of the riders offered with best term insurance plans are:
Even though a term life insurance policy is designed to cover death, there are certain types of death that are not covered by term life insurance policies. Deaths due to the following reasons are not covered by term insurance.
Term life insurance is bought to financially secure the life of our loved ones, however, some intentional and unintentional mistakes can defeat the purpose of taking the policy. Insurance companies reject term insurance claims due to several reasons.
Giving incorrect details: While filling the form for term life insurance, ensure that you provide correct details. Insurance companies take concealment of information or providing incorrect information very seriously and it could lead to the rejection of the claim.
Hiding medical history: Not disclosing medical history is valid ground for ejection of the claim. If it is found that the insured had a pre-existing disease which was not declared in the insurance form, the insurer may reject the claim. Some people also hide their smoking or drinking habit to reduce the premium. It could also result in the rejection of the claim.
Refusing to undergo medical test: While buying a term life insurance plan, you are required to undergo a medical examination. The insurance company uses the medical test to assess the risk. Refusal to undergo medical examination could lead to the rejection of claim later.
Not disclosing existing policies: When you buy new term insurance, you are required to provide information about any existing policies. Failure to reveal existing policies can result in the rejection of the claim.