Term Insurance 210 views August 19, 2020

Term Insurance Add-on Benefits for a Base Plan

Usually, most of the people buy a term insurance plan to secure the future of their family. It is the best way to secure your family’s financial problem when you are not with them. The premiums of the term insurance plans are also affordable and it gives you a high sum assured. But you can also enjoy term insurance add on benefits for a base plan by paying some more premiums. They can be either waiver of premium benefits or riders’ benefit. So, here you can the various types of benefits that you can add to your basic term insurance plan. All you need is to pay some nominal extra premiums to enjoy more benefits.

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Things to Add to a Basic Term Insurance Policy

There are four major add-ons that you must add to a term plan for giving more financial protection to your family. You can explore all the add-on benefits to the term insurance plan below: –

  1. High Sum Assured
  2. Waiver of Premium Cover
  3. Critical Illness Cover
  4. Moneyback Benefits

High Sum Assured

You must always choose a high sum assured while buying a term insurance plan. It will help you to give your family the maximum benefits so that they can deal with every financial problem when you are not with them. It is obvious that a high sum assured will increase the amount of premium but it will also give large protection to your family and loved ones.

Waiver of Premium Cover

If you want to enjoy this benefit then you will have to pay an extra amount of premium. In this benefit, if you are diagnosed with any type of critical illness then the company will waive off all your future premiums that have to be paid. Your term insurance policy will not lapse and you will enjoy the benefits further up to the policy term without paying the premium.

Critical Illness Cover

You must add a critical illness rider to a term insurance plan. If you are diagnosed with a critical illness then the company will pay you the amount of the sum assured on critical illness to you. You can utilize that amount for the treatment of critical illness. This rider will help you to deal with the financial problems that arise due to the critical illness.

Moneyback Benefits

Most of the individuals think that a term insurance plan is a wastage of money if the insured survives the policy term. But if you add the moneyback benefit to the plan then the company will return some part of your premium at the expiry of the policy term. Your premiums will not be wasted and you will get the return of the premiums.

Benefits of a Term Insurance Plan

There are also some exclusive benefits of a term insurance plan. You must see those benefits and then take the policy to protect your family.

  1. Low Premiums
  2. Family Protection
  3. No Waiting Period
  4. Lifetime Cover
  5. Flexibility in Pay-outs

Low Premiums

The term insurance plans usually have an affordable premium and you will have to invest just a small part of your income. On the other hand, nominal premiums will give you a high sum assured, and the premiums in the term insurance plan are less than the premiums in the health and investment insurance plan.

Family Protection

Your family will have financial protection if in case you die an unfortunate death during the policy term. Your family will be safe and live their life happily in the future using the amount of the sum assured. Term insurance plans are best for those individuals who are the single bread earner of the family.

No Waiting Period

There are some term insurance plans that don’t have a waiting period. Your life cover starts from the date of inception of the policy. If you have purchased a term insurance plan someday and you die another day then your family will receive the full amount of the sum assured that was decided at the time inception of the plan.

Lifetime Cover

There are some term insurance plans that give you a life cover up to the age of 99 years. So, you can take such plans to provide lifetime protection to your family. In other words, the sum assured is guaranteed and it will be given to your family because in very rare cases an individual survives up to the age of 99 years.

Flexibility in Pay-outs

You also have the option to decide the pay-out of the sum assured. Your family can take the sum assured on death as a lump sum or through a monthly repayment. There is a flexibility of receiving the pay-outs of the sum assured.

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