How To Secure Your Family With A Term Plan
The financial security of any family is largely dependent upon their primary breadwinner. Therefore, in the event of their unfortunate passing, the entire financial structure of a household is prone to falling apart. It is, thus, imperative for all of us to secure the financial strengths of our respective families and one of the best ways to accomplish this goal is to buy a term plan.
What is term insurance?
A term insurance plan is an agreement wherein an insurance provider promises to pay a predetermined sum to the nominee of the policyholder in the event of latter’s death during the policy tenure. The concerned insurance company provides the aforementioned service in exchange for a premium that can be paid in a single instalment or multiple ones. Term insurance plans provide a high life cover at relatively low premiums, particularly if you buy one at a young age.
How can you buy term insurance?
There is a wide selection of term insurance plans in India from which you can choose the one most suited to your financial goals and budget. With the advent of technology, it has become incredibly easy to buy term insurance online. At Tata AIA, we offer several plans including Term Life Insurance plans that can be purchased on our website through a simple and quick process.
Here is how a term plan can help you secure your family
You can purchase a term insurance plan and provide financial protection to your family against any eventualities. The death benefit under a term insurance plan makes it a life insurance plan with financial protection. Therefore, a term insurance plan for your family safeguards their financial situation in the wake of your passing.
A term insurance plan protects your family in the following ways.
The family of the policyholder is eligible to receive the death benefit under a term insurance plan. Therefore, if you have a term insurance plan and pay the premiums on time, your family shall receive the sum assured under the plan as a death benefit if you die within the policy term. For instance, the Tata AIA Life Insurance Sampoorna Raksha Supreme plan (UIN-110N160V02) offers flexibility in the payout of the death benefit: your family can choose to receive this benefit in the following ways:
A lump-sum amount
A combination of a lump-sum amount and staggered payouts
However, you are required to select the mode of payout of the death benefit at the time of purchasing the plan. If you choose the staggered benefit payout option, you need to specify the amount of benefit paid to your nominee after your demise and the number of staggered payouts. The staggered payouts can be paid out monthly, quarterly, half-yearly, or annual.
The staggered benefit under the Tata AIA Life Insurance Sampoorna Raksha Supreme (UIN-110N160V02) plan shall be paid in accordance with the frequency that has been selected for the benefit period, which can be a maximum of 60 months, beginning from the first month anniversary of the policyholder’s death.
Pure term plans do not carry a maturity benefit; that is, if the policyholder survives the tenure of plan, no amount is paid to their family members. The Life, Life Income, and Credit Protect options of the Tata AIA Life Insurance Sampoorna Raksha Supreme plan (UIN-110N160V02 ) do not have any clause for a but survival benefits in the form of monthly income are paid in the Life Income option till the policy term. However, the Life Plus option of this plan enables you to receive an amount equivalent to 105 per cent of the total premiums paid in case you survive the tenure of the plan, and the plan has not been terminated before maturity.
Under the Life Income option of the Tata AIA Life Insurance Sampoorna Raksha Supreme plan (UIN-110N160V02) , a survival benefit is paid if all the premiums due under the policy have been paid. If you have selected the Life Income option of the term plan mentioned above and opted for monthly payouts after the attainment of the ‘Income Start Age’, you shall be eligible to receive the predetermined regular monthly income after the policy anniversary that follows said attainment.
Under the Life Income option of our Tata AIA Life Insurance Sampoorna Raksha Supreme plan (UIN-110N160V02 ) you can receive monthly income from the ‘Income Start Age’ of 55, 60, or 65 years till the end of policy tenure or your death, whichever occurs earlier. The age needs to be selected at the time of purchase of the policy and cannot be changed thereafter.
Payor Accelerator Benefit
All the plan options under the Tata AIA Life Insurance Sampoorna Raksha Supreme Plan (UIN-110N160V02) comprise a ‘Payor Accelerator Benefit’ through which you can receive 50 per cent of the sum assured as a lump-sum amount if you file a terminal illness claim and it is approved. After the payment of the sum mentioned above, the policy continues, and all the subsequent premiums are still required to be paid.
It is important to note that if the sum assured becomes lower than the ‘Payor Accelerator Benefit’ that has already been paid out to you, the policy shall be terminated. Furthermore, if you survive the policy term after being diagnosed with a terminal illness and having received the benefit, there shall be no additional payment at maturity of the policy.
Purchasing a suitable term insurance plan is a prudent decision that can help you safeguard the financial future of your family and shield them against untoward risks. It is important to select an adequate term plan with significant coverage and flexibility. Tata AIA Life Insurance Sampoorna Raksha Supreme Plan (UIN-110N160V02) is a comprehensive term plan with diverse variants that have been designed to address the varied life insurance requirements of individuals.