Term Insurance & It's Benefits


Insurance vs Term Insurance
  
What is Insurance :

• 10 to 20 Year's Duration
• Money Back Scheme
• Risk Coverage 2 to 5 Lakhs
• Maturity money according to premium with some return

 What is Term Insurance :

• 10 to 40 Year's Duration
• No Money Back Scheme
• Risk Coverage - as such no limit
• Zero Maturity money
• Very less annual premium




How Term Insurance works :

• Only applicable when mishap happens
• Lower Premium with higher coverage
• Age ranges from 18 to 65 year's


Benefits of Term Insurance :

• Less Age Less Premium & vice versa
• Premium remains fix till maturity
• Pay premium either yearly, half yearly, quarterly or monthly.

  
Tentative Premium amount for different age groups for 1 crores coverage :

• 25 year's = Rs. 7000 p.a.
• 30 year's = Rs. 10000 p.a.
• 35 year's = Rs. 13000 p.a.
• 40 year's = Rs. 17000 p.a.


Documents required to buy Term Insurance :

• ID Proof (PAN Card / Passport / Aadhar Card / Voter ID Card etc)
• Address Proof (Driving License, Passport / Aadhar Card / Voter ID Card etc)
• Income Proof (Salary slip / Form 16, ITR etc)
• Age Proof (Birth Certificate / Passport / Aadhar Card / Voter ID Card / PAN Card etc)
• Recent Passport Size Photo


My Recommendations :

• Buy Term Insurance with at least 10 times of your annual income
• While buying tem insurance fill all the details correctly and properly. It is advisable to sit with an expert to fill all the details or buy through Policy Bazaar
• Buy Term Insurance with critical illness rider.
• Check Claim settlement ratio of the company for which you are planning to buy Term Insurance.

Location: Delhi, India

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