Term insurance is a life insurance product, which offers financial coverage to the policyholder for a specific time period. In case of death of the insured individual during the policy term, the death benefit is paid by the company to the beneficiary. One should know importance of term insurance key features and why you should opt for it before buying term insurance.
The purpose of taking life insurance is to provide life cover to the policyholder and financial security to his family.
There are two ways the individual can take life insurance:
1. By opting for a pure life cover, also known as term insurance
2. By taking life cover with a savings component built-in, also called endowment insurance.
Eligibility Criteria.
- Age proof (Aadhar card/ Voter Id card)
- Income proof (last 3 years ITR filed)
- Medical report on current health diagnosis. This mostly is taken care by the company. One should carefully go through the description of the plan suitable for oneself. Entry age limit, exit age limit, PPT, PT are some of the key features. One should not neglect these.
- After validation of documents the underwriters decides the term and conditions of the policy.
Term plan offers various benefits for family protection in case of a mishap. In today’s world of uncertainty one should have a term plan.