Term plans are a relatively newer form of life insurance that gives people a lump sum payout to a nominee in the unfortunate passing away of the policy holder. These are strictly life policies that do not offer any other type of benefits such as a savings component or maturity benefit during the end of the policy period.
The best term plan can come with a range of additional options and rider benefits, which we will briefly discuss in this article so that you can get an overview of the plan and understand the various payout options under the policy!
Accidental Death Benefit Rider
This benefit is offered in case the policy holder passes away in an accident; wherein an additional amount is paid on top of the sum assured to the nominee of the policy holder.
Accidental Disability Rider
In case the policy holder is rendered handicapped due to an accident, a certain percentage of the sum assured is paid out to the policy holder. However, the percentage of the sum depends on the severity and nature of disability as laid out in the policy terms and conditions.
Accelerated Death Benefit
In the unfortunate event that a policy holder is diagnosed with a terminal illness. Then the policy pays a lumpsum amount to take care of the medical expenses. Do check with your policy provider to check if they offer this rider on their term insurance plans.
Critical Illness Benefit
If a policy holder is diagnosed as being critically ill, this rider pays out a lumpsum amount to take care of medical expenses as income and the financial well being of the policy holder is compromised. This rider applies to specific illness listed in the policy terms and conditions, so do check with your policy provider to find out what illnesses fall under the ambit of critical illness.
Waiver of Premium
Loss of income and disability often render a person unable to pay the premiums on time. This rider is designed to offer respite to the policy holder in such circumstances as the policy remains active and all future premiums are waived off giving the policy holder the safety net of a term insurance policy even when they cannot pay the premiums.
It’s an additional benefit offered by the best term plan giving the family of the policy holder an additional income for a specified period which is up and above the sum assured under the policy. In this way, the term insurance plan gives guaranteed income to the family in case of the unfortunate passing away of the policy holder.
A term insurance plan is something that every individual must invest in to provide a safety net for their family even after their passing. It can go a long way in ensuring that the family continues to receive monetary support for bearing day-to-day expenses, including education for the kids, EMIs, among other expenses.
Some of the best term plans in the industry offer all-around financial protection to your family by combining the sum assured with additional riders and benefits to give your family the confidence to live their dreams so that they don’t have to compromise on anything in life. It’s a safety net that guarantees that even when the policyholder is not around anymore, their families can still continue to live their lives without having to face hardships and insecurities in life!