Which Term Insurance Plans You Should Prefer???

Issues related to buying online term insurance can be resolved easily if person knows his actual requirements and how to address them with correct products. There are 24 life insurance companies in India available in the market and provide more than thousand plans across segments such as endowment, term life, child plan, money back, ULIP and annuities and so on.

These policies are available with a wide range of riders and other options. As a customer, if you really want to make sense out of all your requirements, then you must know three things which are mentioned below:

• Your needs
• Coverage period
• Process of buying

Instead of focusing on their sales speech, know your two fundamental risks in life.

• Early demise
• Living too long

If you die at young age, you leave your family without sufficient financial support. On the other hand, second scenario leaves you with inadequate financial support in your old age. It is advisable to consider the impacts of these two risks.

If your family is dependent on your income, then you have to make sure that your loved ones continue to enjoy the same standard of living in case your income is no longer available to them. In this scenario, buying online term insurance plans is a smart move as this policy pays the beneficiary an insurance amount equal to the sum insured in the event of policyholder’s demise.

Generally, customers require that fund to be equal to their salaries. Usually, it has been observed that people insure themselves up to the age of anticipated retirement. Buyers can purchase life insurance online or from an agent.

The product cost is fixed, so just do online comparison to get the best deal. Mention all information correctly in the application form to avoid claim rejection.

In India, life expectancy is below 70 years of age and majority of people have sufficient retirement savings which will be enough for few years post-retirement. But, what if you live more than that age? Today, employers are not offering guaranteed lifelong pension and hence, will depend on their children for financial support. To avoid such situation, start thinking about how to handle these risks.

Annuity is a completely different concept and to buy it, customers have to pay lump sum money. In return, insurance companies in India pay a guaranteed monthly income to policyholder until your partner is alive. But, do not invest your complete retirement savings into annuities.

[Source: http://blog.policyboss.com/term-insurance-policy/term-insurance-plans-prefer/]

Term Insurance Options When You Are in Your 50s

Health can be a serious problem as majority of people may be hit by hyper tension or diabetes etc. Online term insurance policies India are always affordable for healthy and young people. When you are fulfilled with most of your responsibilities, you may still wish to leave a strong financial support for your children and grandchildren as well.

As age passes, people are more prone to health problems and hence, it is advisable to buy comprehensive health insurance online which insures policyholder’s life and his or her medical expenses. It is a fact that hospitalization can drain all your hard-earned savings and only mediclaim policy would handle this financial burden.

Insurance to buy at the age of 50

Annuity and Pension Plans

An exclusive segment of policies provided by term insurance companies in India is retirement solutions. This solution involves accumulation phase and redemption phase. During accumulation phase, policyholders generate retirement fund by investing their hard earned money in retirement plans before retirement.

On the other hand, redemption phase in the form of regular and guaranteed income throughout life post retirement under annuity plans. According to industry experts, a combination of these two financial products offers a good investment avenue which manages risk effectively.

Health Insurance

Comprehensive health insurance sufficiently covers any emergency medical condition. While deciding sum insured, do not forget to consider the increasing inflation rate and its effect on medical costs and your residential location. Always prefer cashless schemes and opt for a plan that covers basic hospitalization expenses and post-hospitalization costs. Search those plans which give a wide range of advantages including no claim bonus.

Term Insurance

This is the simplest yet important term insurance plans available in the Indian insurance market. It provides life coverage, monthly income under certain conditions and sum assured in case of policyholder’s demise.

At the age of 50, people must be careful where to invest their money. So, invest wisely or take guidance of a certified insurance professional to help you in your financial planning.

Source from  : http://blog.policyboss.com/term-insurance/term-insurance-options-50s/

Know More about Single Premium Term Insurance

Single premium term insurance policy is designed for those who want to buy a policy at one go. As compared to traditional insurance products, policyholders have to pay premium at periodic intervals for these policies.

It is a onetime payment solution for those who don’t want to go through the trouble of periodic payments. When the premium payment has been done, buyer becomes the policy owner with certain death benefits.

For single premium term insurance policy, policyholders don’t have to worry about paying any further premium payments or the lapse of your insurance if insured forget to make any payments.

All leading insurance companies in India offer this insurance for the benefit of their clients and customers can access some policy aggregator portals online to know which one is suitable for your needs. If you have a lump sum fund with you, then it is advisable to opt for a single premium term insurance policy.

Under this plan, policyholders get financial security against taxes. When person invests in this insurance product, he or she is given exemption of up to Rs 1.5 lakh. In case something happens to policyholder, his or her beneficiary would get the insurance money which is absolutely tax free.

But, insured is eligible to avail the tax exemption benefit only once for this policy because policyholder is investing in this term insurance for one time only. As you paid up in full upfront for this policy, so you don’t have to worry about the plan getting lapsed if you forget to pay the premium amount.

Your policy is completely valid till the entire policy term and reduces the sum assured when the policy period comes to an end. It generates cash value. Person is building a financial asset for himself or herself when he or she makes the premium payment for single premium term insurance. It comes in handy if you want to apply for loan and can be used as collateral against loan.

[Source: http://blog.policyboss.com/term-insurance/know-single-premium-term-insurance/]

How to plan your life ahead of times

“In life we all strive to plan well and planning is all about living well.” But no matter how much you try everything in life does not go as planned. At times, life throws up nasty surprises and we have to accept it, live with it and move on. Many a times you may have planned various things for you and your family in future. But what happens if you struck with untimely death? Your entire family suddenly turns orphan, and if you were the only breadwinner it only adds to the difficulties for them. Therefore, insurance market has introduced the term plans whose main objective is to protect your family financially from unforeseen circumstances. Term insurance plans have a high risk protection component. The main protection plans protect the family against the ‘cash flow risk' of the untimely death of the breadwinner. The only way to somewhat reduce the pain of death in the family is to make sure that at least financially the family is secure.

In India there are around 20+ insurance companies offering various sets of life insurance policies to people. Many a times the product list is so vast that it becomes very difficult to choose among the options available. Therefore, in order to buy the right type of life insurance, an individual must perform some research and evaluate various policies according to their own requirements. The first thing you need to do is assess your own needs before deciding what you want to buy. There are various policies such as unit linked, whole life insurance or term insurance plan in the market available for the potential customers. All you need to do is just understand your needs, do a bit of research through online portals or calls or visiting the insurance companies and just buy a suitable insurance policy.

Term insurances are one of the best tools of modern day life insurance schemes which comes in the form of a straightforward protection plan, that enables the insured to get adequate life insurance cover at an affordable cost. The reason being straightforward is that term insurance is a pure risk coverage plan i.e. it covers income related risks. It protects your family against financial hardships in your absence. But Best Term Insuranceplan cannot be perceived as an investment tool as it does not provide any maturity value to the policy holder in case he/she outlives the term period, unless he/she chooses a return of premium term plan.

In order to buy best term plan in India, there are few things that a person must consider. One must compare term plan offered by various insurance providers as different policies has different types of coverage’s. Remember term is straightforward so higher the insurance coverage, higher the insurance premium and vice-versa. You should carefully study the fact that your ideal choice term plan should cover the household expenditure, major expenses like marriage of the children and other liabilities like loans. Life cover should be adequate in order to achieve the purpose of insurance.

Determine the time frame between 5-25 years till you require insurance cover which can be associated with your dependents. Buy the insurance policy till the time you have dependents depending on your income. Not to forget inflation, any amendments in policy structure by government should be considered so that the insurance policy satisfies your financial requirements in the future.

It’s better to buy term plan earlier in life as premiums set are low when you are young. Always compare to buy cheaper term life plan and most importantly an effective one. An individual can use comparison tools provided by insurance aggregators online to compare term plan rates which will eventually help you to buy best term insurance plan in India.