Term Life Insurance Plans – Options for Protection of Loved Ones

To help protect your loved ones should you suffer a devastating injury or die, you need to consider term life insurance plans. Here are some further details.

Term life insurance plans offer a cost effective way to provide money for your beneficiaries. These plans do not offer any kind of cash benefit to them.

They are designed to pay out a fixed amount of money following your death. The premiums are based on the amount of the policy, your age, and the term of the policy.

Many people want to purchase term life insurance for a given amount and know that their premiums will remain fixed for a certain period of time. For example, you may wish to consider a policy which pays your beneficiaries $100K.

The premiums would vary depending on your age, health, and length of time you desire to have the premiums fixed. The premium for someone in good health at age 25 would normally be substantially less than the premium a 55 year old in poor health would pay for the same amount of coverage.

The term of a life insurance policy can vary. Normally it can range from 5 to 10 years and sometimes longer. The premium is higher for longer fixed terms.

In many case the person applying for a plan will be required to undergo a medical evaluation to assess his health. This may include blood tests and other diagnostic tests.

But for good protection of your loved ones, check out some term life insurance plans. They can bring you and your family good peace of mind.

Know About Different Life Insurance Plans

Today, almost everybody owns a life insurance policy. It could be for various reasons like investment purposes or for tax benefits, but the key point is that it provides complete peace of mind. With insurance plans, one does not have to worry about their family’s future security in their absence. These plans provide financial security to the surviving family members after the death of the insured.

Insurance is a must for anybody who has financial dependents. The age bracket to buy a insurance plan is approximately from 18 – 75 years of age. Most of the banks have a minimum and a maximum amount of money to be assured.

Types of Life Insurance Plans

Broadly, the two main types of insurance policies are term insurance and whole life insurance. Term Insurance Plans are the most basic and simplest plans. These plans provide a cover for risks only for a short period of time. After the term comes to an end, you can renew the plan but chances are that the premiums will rise. These plans are economical.

On the other hand, whole life insurance plans are expensive but these policies continue for as long as the insured lives. These plans are sometimes treated as investment options because one does not receive any money till the death of the insured.

Other plans include unit link life insurance plans that offer great investment options along with financial security. Usually, one has to pay two separate premiums – one for the life insurance and one for investment. These plans are beneficial as they provide financial solutions during your lifetime as well as after your lifetime to your family members.

There are retirement insurance plans available for senior citizens too. Insurance policies are extremely important for such people as these plans offer security and freedom to the surviving spouse. Child plans are another choice in insurance plans. These policies provide financial aid for your child’s education, marriage, etc. Another option are the health insurance policies. Health insurance policies provide a cover for medical expenses. These plans are suitable for people who suffer from health problems like diabetes, cancer, etc.

Riders in Life Insurance

Riders are the additional benefits that one can add to their life insurance policies. However, the premium amount increases with the inclusion of these riders. There are several types of riders in insurance plans offered by banks. The most popular of all are:

Critical Illness Benefit Rider: It offers financial aid in case the insured gets diagnosed with critical diseases like cancer, heart attacks, kidney failure, etc. Accidental Death and Disability Benefit Rider: In case the insured becomes disabled following an accident, this rider covers this risk.

Tax Benefits

Tax benefits as per the Income Tax Act, 1961 offer a deduction in the premium amounts, investments, dividends, etc. However, these benefits are subject to amendment regularly.

These Plans protect the needs and requirements of your loved ones in case of unfortunate events. It helps keep your family safe and secure even when you are not around.

Affordable Life Insurance Planning

This contemporary world has not only seen remarkable increment in incomes in all walks of life, but also increased the precariousness of the future. Due to this changing environment, the insurance industry has realized that different categories of people require different insurance policies, and they must foresee the purchasers’ burdens in life; they invented many new policies for the customers, such as the whole and term life policy.

Why say affordable life insurance? Because nowadays there are people not only buying for themselves but also family package policies for his family and his children. The family package may include the children’s educational fees for the future as well. Therefore an affordable life insurance has a wider sense and the insurance company drafts new policies from time to time to supply their customers with what they need.

Insurance may impact our life for some ways, whether it is a car, life, health, fire or other type of insurance, there are insurances for every customer. But basically, most people would purchase an affordable life insurance for initial protection, because in future if he purchases a car, for most of the countries, car insurance is compulsory, and which means he has two policies to pay.

There are inflation and higher prices on commodities each day, the medical fees and education fees are costly too. If a person is infested by illness and unable to work, he can no longer support the family but the worst thing is he needs money to pay for his medical bills. Insurance companies provide customers coverage on this crisis by medical policy; the insured can purchases hospital benefit to obtain protection, the insurance company will pay for his medical fees if he should fall ill and need medical care.

Therefore as you can see, a person cares for his family has many things to consider. If he is not working he needs money for medical care, he may think of buying a medical policy, which means he has another premium to pay.

Life insurance planning needs to think far ahead, a solicitous person with great responsibilities may have a few policies to pay.