Term plans: “Boon” for full financial protection to your family

After returning from office I just went for jogging in the evening. I saw our neighbour Mr. Mehta sitting on the bench nearby looking slightly worried. As a courtesy I asked him why he is so tensed. He said nothing serious but eventually explained his financial conditions and the financial security concerns for his family. Being a family oriented person I absolutely understood his concern and introduced him to the term plans one of the best insurance policies to provide a cover to your family if anything unfortunate happens to you.

Lets understand what term policy is and how does it work for your family’s financial protection: Term covers are life insurance policies in which the insurer agrees to pay one’s beneficiaries the sum assured in event of his or her premature death during the policy term decided against payment of regular premium to the insurance company. Once the policy is issued, premium remains the same for the entire tenure of the policy. However, if the person survives then there are no return benefits. But term plans are best mental satisfaction ever as they offer desired cover to the family incase you were to meet with any unfortunate incidence.

In today’s time term plan is the best protection cover insurance companies offer to their clients. Term insurance has the lowest possible premium among all the other insurance plans available. While there are many ways to purchase term insurance plans such as visiting companies, calling up agents or customer service teams etc. it is advisable to buy term plan online. With the arrival of e-commerce the world has moved ahead fast and competitive. Buying online not only save time and money but also plans around 30 to 40 % cheaper as compared to offline term policy.

Secondly, online proposal can be filled at your own convenience so you have time to furnish correct information. You get insurance premium at reduced rate largely because insurers itself save the costs when they shift the business of selling off plans online. The best example would be saving on papers, stamp duties etc.

When you purchase term plans through agents you need to pay 20-25% as commission to them. So, buying online means there are neither agents involved nor commission problems. Thus, online is straight saving and insurers are able to pass on benefits to their customers.

While taking a term policy you need to disclose all material facts regarding yourself and your health. Many people who are smokers & alcoholic tend to hide their habits but this is wrong ultimately if things are revealed later your policy will either be terminated or your claim could be rejected so it’s better to be honest with insurer at the time of purchase. Secondly, your present and past medical conditions, insurance history, personal and family health, lifestyle habits, etc., have an important bearing on risk. Ideally, if the problems are less, processing is hassle-free but if there are problems don’t worry processing will still take place but at different solution level. The moral of story is hiding means putting unnecessary threat of policy termination, shortage or no claims.

Thus, in today’s highly inflating economy Online Term Plan have come as a boon for those millions of people who wish to give full financial protection to their family but are finding it difficult to offer them due to high premium costs insurance policies or investment funds.