Term Insurance Policy: The Covid-19 pandemic has proved how uncertain our lives are. Every person wants life-long financial security for his family considering the present-day pandemic. For such situations, a term insurance policy is the best option. Under this, you can take insurance up to 1 crore by paying Rs 500 to Rs 1000 per month. According to experts, the sooner you take term insurance, the better its returns will be. Taking term insurance at the earliest not only keeps the premium amount low but the cover available with it is also very convenient.
If someone dies then a term insurance plan provides financial support to the family of the deceased thus protecting you against any money issues. According to experts, taking term insurance till the age of 26 has several advantages and benefits. Its premium can be Rs 600 to Rs 1200 per month. You can get your term insurance policy renewed every year or you can buy this policy for a long duration also.
Term insurance adds up to 25 times your earnings
Term insurance can offer you up to 25 times your earnings. For example, if your annual income is Rs 5 lakh, then you can easily get term insurance of Rs 1 crore. There are many options available in the market to buy term insurance. However, before choosing the insurance company, you need to consider some things in mind.
You can choose the most suitable plan by getting information about the companies available on IRDA's website. Before choosing a company, you should keep 2 major things in mind. First, what is the Claim Settlement Rate (CSR) of the company i.e what percentage of the claims have been passed by the company. Second, the amount of claim that the company has paid so far i.e. what is its Amount Settlement Rate (ASR).
Maturity benefit is not available in term insurance
You can buy a term insurance policy for a specified period of time. You can buy it for 10, 20 or 30 years. In this plan, you get insurance coverage for the chosen term. Term insurance plans provide life cover without the savings/profit component. The Sum Assured under the policy is paid to the beneficiary on the death of the policy holder during the policy term. However, maturity benefit is not available in this insurance.
Change in rules due to the Covid-19 pandemic
Because of the Covid-19 pandemic, insurance companies have tightened the rules for getting term or health insurance. Now, many companies are no longer offering term insurance without the Covid-19 vaccination. Also, almost all the insurance companies are now seeking information related to the Covid-19 from the applicants..