How much term insurance coverage you should consider —Name withheld on request The product construct of term insurance will remain the same, whether you buy it online or through an insurance broker. In fact, most platforms that sell online are insurance brokers and vice-versa. So, the differentiation in terms of product and process is limited. The principal differences are of options, service and price. First, you should consult an entity that provides multiple options neutrally without a bias towards one insurer. This would enable you to make an efficient comparison. Second, term insurance requires coordination with insurer at the time of policy purchase to enable proper underwriting. If...
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Term Insurance: The critical missing piece in your financial planning When it comes to financial planning, we usually think of investing in various instruments to get maximum returns. However, we miss out on the financial protection of life, i.e. insurance. While growth of wealth is essential to meet life goals, financial protection from unexpected shocks is equally important. If you are the sole earner of the family, you should definitely consider buying a term insurance plan. Term insurance is a contract between the policyholder and the insurance company wherein the company pays a specific sum to the policyholder’s family at the time of death of the policyholder. This sum is paid in...
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Should you opt for home loan insurance or a term plan? Do note that If you were to purchase a house with a home loan, you will need to cover the liability with insurance equivalent to the loan amount. Such liability can also be covered with a term loan. However, what you need to know is whether the benefits of a term loan outweighs those of a home loan insurance. Experts say that if your liability merely extends to your home loan, then you can consider buying home loan insurance as the sum assured decreases based on the reduction in outstanding loan. However, a term plan ensures protection towards debt obligations in a broader way, including the home loan and other types of loans and...
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How to choose the right term and health insurance covers As the name suggests, a life insurance policy provides coverage for a certain period of time or a specified ‘term’. Term insurance is a pure protection life insurance policy, which in case of an unfortunate event during this time frame provides a guaranteed amount. It compensates the nominee of the insured for the loss of income. Supriya Rathi, Wholetime Director, Anand Rathi Insurance Brokers, says, “Since term insurance is generally limited to Death benefit applicable if the individual dies within the policy period, and does not provide any maturity income, it is comparatively cheaper than the other life insurance plans.” Here are...
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Understanding claim settlement ratio: Why it matters when you buy Term Insurance Plan Term Insurance Plan is one of the most popular Life Insurance Plans in the market, and for good reason. Term Insurance Plan is one of the most popular Life Insurance Plans in the market, and for good reason. They promise a large sum assured for your family if the worse happens and you are not there. Combine that with low premiums that stay unchanged throughout the policy tenure, and you have a winner! You might feel like connecting with your agent right now and getting a term insurance plan for yourself, but we urge you to wait! The promise is good, but you need to make sure that the promise is kept in...
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A lot of what happens in your future depends on your decisions today. This is especially true when it comes to Financial Planning. Therefore, you need to carefully choose and build a financial portfolio to have a secure and comfortable life. Two products that are often listed as a must-have for your portfolio are ULIPs and Term Insurance. Both have their advantages and can bring a lot of financial value to your life, but deciding between them requires a nuanced understanding of their features and clarity about your needs. Only then you can choose the right product for your portfolio. Let us go through a detailed comparison and understand what these products are, the difference between them...
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Five reasons you should buy a Term Insurance Plan now One of the harsh realities of life is its unpredictable nature. No matter how well we plan to live the life of our dreams, an untoward incident like a sudden illness, accident, disability or even death can not only affect us personally, but also our family. The sudden loss of the family’s breadwinner cannot just have an emotional impact, but also a financial one that would become difficult for the family members to cope up with. At such times, buying a term insurance plan can be a saviour. It provides quick financial protection to your family. A term insurance plan offers financial coverage to the policyholder for a specific tenure...
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Term insurance is frequently seen as a crucial component of a financial portfolio by professionals. But have you ever wondered why this is the case? There are various reasons for this, including the fact that it is the most basic type of life insurance policy available in the market. So, let us take a closer look at what term insurance means. What Is Term Insurance? Term insurance is an insurance plan that is simple and easy-to-understand terms in which you pay a fee in exchange for a life insurance policy (guaranteed sum assured). If you die within the policy term, the policy nominee receives the insurance payment amount specified in the policy. And if you survive the maturity period of...
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Riders that can make term insurance policy comprehensive Sanjiv Bajaj, joint chairman and MD, Bajaj Capital, said a policyholder could buy a term insurance rider by paying an additional premium amount. Most plans allow the addition of riders at the time of policy inception, while others allow rider addition at policy anniversary. “You must also know that a rider normally comes into action when the specified event for which you had purchased the policy occurs. Therefore, later on, if you do not want to continue the rider protection benefit, you can intimate the insurer and stop paying the rider premium while continuing your base term policy benefit as it is," said Bajaj. Following are some...
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Although life insurance penetration rates in India are meager compared to that of the rest of the world, the sector has been making significant headway in the recent past. In FY 19, the premium from new life insurance business increased YoY by 3.66%, as per recent reports. This increase can be attributed, in part, to increased flexibility models being adopted by life insurance providers. Insurers are now allowing offering a variety of plans that can be tailored to the needs of the policyholder. For instance, policyholders can choose from a large variety of term insurance plans available in the market. Term insurance plans can be customizable as per the needs and goals of the policyholder....
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