Term Insurance – The Complete Guide

Posted by  Fintra , updated 2021-04-16

Term Insurance – The Complete Guide

Do you know what is in store for you and the future of your loved ones? In your absence will your family be able to tackle an unexpected financial burden? It's about time you think about these scenarios and secure your family's future. One vital way to do so is to opt for a term insurance policy because it will provide financial security to your loved ones when you're no longer available to take care of their daily expenses.

In this blog, Fintra will highlight the following topics:

  1. What is Term Insurance?
  2. Why Term Insurance is important?
  3. What are the Benefits of Term Insurance?
  4. Term Insurance Premium Calculator
  5. What are the Age Limit and Ideal Age for getting Term Insurance?
  6. How is Term Insurance different from Life Insurance?
  7. How is Term Insurance different from Health Insurance?
  8. What are the different conditions for claiming Term insurance?
  9. What are the Documents required for Term Insurance?
  10. Which are the various companies that offer Term Insurance Policies? 

What is Term Insurance?

Term life insurance is insurance offered by an insurance agency or company, wherein the beneficiary is provided with comprehensive financial coverage against the premiums paid for a certain period of time by the beneficiary for its policy. The coverage provided by the policy under term insurance plans is paid as “Death Benefits” at the time of the demise of the insured individual during the term.

Why Term Insurance is important?

Purchasing term insurance is vital because may whatever stage of life you're at, someone in the family, including yourself, could suffer from critical illnesses. Treatment expenses incurred towards treating the illnesses could erode all your savings. Thus, in today's uncertain world, purchasing term insurance is a wise decision because it provides a financial safety cushion to your family and takes care of every requirement when you are present or not.

What are the Benefits of Term Insurance?

Term Insurance Premium Calculator

The term insurance premium calculator helps one to determine the amount of premium they have to pay to the insurance agent or company to get insured. Because there are so many companies offering Term Insurance Plans, these calculators also give you the option of choosing between different insurers and compare the premiums offered by them.  

What are the Age Limit and Ideal Age for getting Term Insurance?

One can get a Term Insurance Policy as soon as they are 18 and up to 65 years of age. It's advisable to get this insurance as soon as you begin earning and are mature enough to opt for the best plan that suits your requirements. The coverage of a normal Term Insurance is up to 99 years of age, and in some of the companies, one can get that expended by paying a certain amount, too.

How is Term Insurance different from Life Insurance?

Term insurance is mainly for a specific term/time period like 40-50 years and Life insurance offers the benefit of the policy upon the maturity of the policy irrespective of whether the policyholder is alive or dead. In Life insurance, if the policyholder dies, then the policy money is given to the nominee of the policy. The policyholder should decide the nominee and the tenure of the policy at the time of registration. Term insurance companies offer financial help and assistance to the family of the person holding the policy in case he/she dies in the term of the policy known as Pure Protection Plan. 

How is Term Insurance different from Health Insurance?

“Health is Wealth”. Health insurance is more crucial and vital for people of every age group because health is the only key to a good, long life. Moreover, taking care of your health is very important, too. Thus, it's a wise act to obtain good health insurance because the cost of surgeries, general treatment, and medicines are rising high. On the flip side, term insurance is also very necessary because one has to think of their family and loved ones even after death. 

What are the different conditions for claiming Term insurance?

Natural demise and death due to some medical ailment or illness are always covered under the Term Insurance Policy. However, there are many terms and conditions regarding any specific policy, which can differ from company to company.

 Some kind of deaths like death by murder or by alcohol consumption is generally not covered under any Term Insurance Policy. Read all the terms and conditions before getting any Term Insurance Policy.

What are the Documents required for Term Insurance?

Which are the various companies that offer Term Insurance Policies?

Summary 

In today’s time, nothing is certain- not one’s health nor its wealth. An individual must get themselves insured. Not just for yourself, but for your family and your loved ones, insurance offers you financial support and monetary help. There are many different insurance policies available in the market. You should inspect and select the policy that suits you the best. Life insurance and Term insurance also prove to be an important asset for you and your family. Just remember, you have to plan for your future and the future of your family and loved ones.

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