Term insurance is the most preferred life insurance plan because of its characteristics. The plan offers substantially greater benefits at possibly lowest premiums for a specific tenure. Though term insurance doesn’t provide any survival or maturity benefits, the plan has been trending since long ago. But, in the past few years, the need for maturity benefits has been seen majorly when the affordable plans such as term insurance are considered. Therefore, the insurance companies come up with the term plan that offers maturity benefits too. Such plans are labelled as Term Return of Premium plans. Following are a few reasons why you should buy term return of premium policies.
You Get the Premiums Back If the life insured survives the policy tenure, there has to be something that he gets back at the end of the term. TROP helps you precisely in the same way. The total amount of premiums paid till maturity is paid back to the policyholder as maturity benefit. In short, availing the term plan at a slightly higher price may give you both death as well as maturity benefits. Flexibility You have a provision to choose the mode of your premium payment such as annual, semi-annual, quarterly, or monthly. The mode of the premium payment has to be decided at the commencement of the policy. Most of the insurers also provide single premium payment provision, which comes at comparatively lesser price than other modes. Another flexibility is the online availability of the play and premium payment. Riders If you feel that the term return of premium plan is not providing the life cover for a particular event, you can choose from the available list of riders. These are nothing but add-on features that allow you to gain coverage against the events like accidental death, permanent or partial physical disability, hospital cash expenses and so on. Tax benefits Term Return of Premium plans also offer tax benefits, similar to other life insurance plans, under Section 80C and Section 10(10D) of the Income Tax Act. The exemption can be availed on both the benefits as well as on the premiums paid towards the policy. In short, the term return of premium policy is nothing but the extended version of regular term plans that allow you avail both death as well as maturity benefits. Now, you need not worry about the maturity benefits if you survive the policy tenure by a good fortune.
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Online policies have changed the entire sector of life insurance drastically. The need for life insurance was increasing however the hectic and annoying process of purchasing the policies traditionally tend to refrain people from buying it. It was usually filling the long and unexciting forms plus finding the exact quote that suits your financial budgeting. To start with, the insurers initiated the process of selling insurance online with the term insurance. The reason behind was the simplicity of the plan that allows people to understand it quickly. Following are a few points that state why you should choose online term insurance plan.
Extra Low Premiums When you buy term insurance traditionally, it has very low premiums as compared to other life insurance policies. However, online term insurance further brings the costs down due to multiple factors.
Adequate Life Coverage Online term insurance has a meagre rate of claims which allows insurance companies are offering the life cover up to several times your annual income. The premium below ten thousand can give you a life cover of up to Rs. 1 Cr. This is the most crucial aspect of online term insurance. Rider Options Term insurance is availed to get the life cover for a certain period, i.e. specific tenure. Meanwhile, not all the policies cover against multiple events. If your term policy doesn’t cover you for a particular event, you can opt for a rider. Numerous riders are available such as accidental death benefit, permanent or partial physical disability, critical illness etc. In short, online term insurance allows you avail multiple benefits that help you in several ways. Get the perfect quote using term premium calculator, today! |
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February 2022
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