Some of us mix insurance with investment. Insurance is primarily for protection not for investments (however some products are designed to act as investment also). One of the purest and cheapest forms of insurance is Term Insurance. Term insurance give you a pure risk cover for a specified term.
If you have a family and dependents the Term Insurance is must for you. If you have taken a housing loan or any other big loan you can’t avoid having a Term Insurance. This policy is particularly useful to cover any outstanding. Since the policy has no financial investment value and most of your premium goes to pay for coverage, with only a small amount used to pay the insurance company's costs. If you are looking for the maximum amount of coverage for your Rupees , term life insurance will give you the most "bang for your buck".
If you have a family and dependents the Term Insurance is must for you. If you have taken a housing loan or any other big loan you can’t avoid having a Term Insurance. This policy is particularly useful to cover any outstanding. Since the policy has no financial investment value and most of your premium goes to pay for coverage, with only a small amount used to pay the insurance company's costs. If you are looking for the maximum amount of coverage for your Rupees , term life insurance will give you the most "bang for your buck".
Example : Say Mr Bond bought a term insurance policy for Rs 25 lakh (Rs 2.5 million). The term of the policy is for 20 years. If Mr Bond passes away during this period, his family will get Rs 25 lakh. The emotional void of Mr Bond can’t be fulfilled however this policy will take care of the financial insecurities. But, if survives for 20 years nothing will be paid, all premiums (money that you pay to the insurance company to maintain your policy) will be a loss.
Term insurance are of various kinds.
- 1.Single premium Term Insurance.
- 2.Regular premium Term Insurance.
- 3.Premiums return Term Insurance.
- 4.Decreasing Term Insurance.
- 5.Loan Cover Term Insurance.
Also Read Advantages and disadvantages
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