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    Choose best life insurance policies

    By Yash Sharma|18th Jan 2018
    A Term Insurance plan is considerably is the most reasonably priced that provides life coverage for a defined term period. Term insurance plans allows coverage only for short terms like 5, 10,15,20,30 and so on; it does not give the coverage for a whole life term. 
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    Life Insurance Policy

    Life Insurance Policy

    The premium amount of the term insurance plans increases annually after initial policy term which is on a renewable basis. This renewable change in the premium increases them hugely therefore the term insurance plans provide the option to switch the plan to whole life coverage in order to avoid the premium increase. Generally, the term insurance plans provide the flexibility to covert the plans in the initial policy term into a universal life insurance plan or a whole life insurance plan.

    What is a Whole Life Insurance?

    A Whole Life Insurance is specially structured to provide a life time insurance coverage which has guaranteed rider addition with fixed premiums. Life insurance with such premium structure is generally more priced than the other insurance plans.

    Following are the features of the whole life insurance plans:

     Cash Value

     Payment of dividend

     Lifetime Coverage

    Cash Value

    A term life insurance and whole life insurance is quite different from each other in term of the benefits they provide. In a life insurance plan the insurance company makes no refund in case of plan surrender wherein a whole life insurance gives the surrender value on the return.

    This benefit of a whole life insurance plan allows the insurance holder to get the plan refund in case he surrenders his plan to get a money refund but also claim a loan or withdraw the amount from the cash value while the policyholder is alive.

    Whole Life Coverage

    If the premiums payments are done timely then your whole life insurance plans provide guaranteed life coverage with no age clause at the time of death. Hence, this helps you not stress about the life of your dependents after your demise.

    Dividends

    Dividend is another major feature of a whole life insurance plan. The insurance holders are paid the dividend amount as the profits which is paid to them year on year till the plan maturity.

    The dividends on the whole life insurance plans can be further used to:

     Buy an additional cover (Extra top up covers)

     The premium amount of the current plan can be decreased against the dividend.

     Policy loan pay offs.

    Accidental Death Benefits of a Term Insurance plans:

    A Term Insurance plans does pay on accidental deaths to the beneficiaries of the insurance holders, this claims are done in a case the insurance holder expires in an accident or in case of accidental disability. The coverage or the assured sum amount only in a case of an accidental death. The term insurance plans also provide the beneficiaries of the term insurance holders with the benefits of critical and terminal illness. The claims are only paid to the assigned beneficiaries of the insurance holders.

    Can the death claim be made in case the policy holder dies in a different country than homeland?

    Yes, a term insurance holder of India can claim the benefits of the insurance if in case he has informed the insurance company prior to his shift. Also he has to inform the insurance company about his relocation. He needs to mention that he now lives outside India. The insurance company provides a facility of change in all the relevant contact information. Although if the relocation is amongst the unsafe countries like Burma, Somalia, Pakistan etc., then this option is marked as void.

    Hence, choose the life insurance plan as per your requirements.

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