Features of Term Insurance Plan - You Need to Know Before Buying
Before investing in a term insurance plan, you must keep in mind that a suitable term insurance plan has certain features that must be duly checked before deciding to make the purchase. Following is a list of important features of a term insurance plan that must be kept in mind:
- Sum assured: The sum assured is the total scope of coverage that is offered by a term plan. The sum assured that is offered by a term plan must be totally sufficient that can ensure complete coverage for your family's needs, even in your absence. In fact, sum assured is the basic parameter on which depends the overall investment that you will make in the form of payable premiums.
- It must take inflation into account: Inflation is the general increase in prices of commodities and services over a period of time. Since a term insurance is a futuristic platform for your financial coverage, therefore the scope of coverage that it offers must take into account the inflation and the corresponding rise in prices over a period of time. This will ensure that due corpus for your family's needs has been created by the time of actual requirement.
- Flexibility of disbursal: An ideal term insurance plan must be flexible enough to ensure that the accrued benefits are paid to the nominee(s) as per their convenience and choice. In simple terms, this means that the accumulated benefits can be either disbursed as a lump-sum one-time payment or in the form of regular monthly pay-outs that suit your family's needs as and when required.
- Term of the plan: The term of the plan must be chosen carefully as this will also directly impact the corpus that will accumulate by the time of requirement. In fact this is the reason why taking a timely decision is important as you get the benefit of time on your side and get the full advantage of investing on a regular basis for creation of the fund-corpus.
- Payable premiums: The due premiums that you will have to pay to the insurer must be as per your budgetary allocations and must suit your needs and requirements. Affordability of the plans and any additional riders is therefore, very essential.
HDFC Life offers HDFC Life Click 2 Protect 3D Plus an online term insurance plan that has been formulated for keeping your finances secure in the event of any unforeseen circumstances due to death, disease or disability.
- Important Features of Term Insurance Plans
- Salient features of a Term Insurance Plan
- Ideal Features of a Suitable Term Plan - Act Now for A Stress-Free Future
- Top 5 insurance policy features for housewives
Income Tax Slab 2021-22
February 17, 2020
Income Tax Return Guide - Details You Should Know
November 07, 2016
Best Tax Saving Investment Options in 2022 (FY 2022-2023)
November 08, 2016
Subscribe to get the latest articles directly in your inbox
14 Best Investment Options In India
October 30, 2018
Short Term Investments: Top 11 Short Term Investment Options For 2022
November 08, 2016
Insurance vs Investment - Did You Get the Right Financial Plan?
November 05, 2018
Popular & Recent Articles
How to Plan for Retirement as Per your Age
"The thumb rule for retirement planning is - the earlier you start, the more you save. However, with age, your priorities change too. So, you need to factor in the cost of living in the present vis- a -vis future."
HDFC Life Insurance Company Limited. CIN: L65110MH2000PLC128245, IRDAI Reg. No. 101.
Registered Office: Lodha Excelus, 13th Floor, Apollo Mills Compound, N.M. Joshi Marg, Mahalaxmi, Mumbai 400 011. Email: [email protected], Tel No: 1800-266-9777 (10 am to 7 pm). The name/letters “HDFC” in the name/logo of the company belongs to Housing Development Finance Corporation Limited (“HDFC Limited”) and is used by HDFC Life under an agreement entered into with HDFC Limited.
For more details on risk factors, associated terms and conditions and exclusions please read sales brochure carefully before concluding a sale.
|BEWARE OF SPURIOUS PHONE CALLS AND FICTIOUS/FRAUDULENT OFFERS