The sole purpose a term insurance is ensuring that your loved ones don’t have to face financial challenges in your absence.
But did you know? Apart from just the maturity benefit, a term insurance plan has added benefits that prove to be of great advantage to the nominee.
- The Payout Options
This is an interesting feature of term insurance where, the policyholder can choose how the maturity amount will be disbursed to the nominee. It can be either a lumpsum amount which can help in paying immediate debts, a monthly payout which acts just like your income or a combination of both.
For instance, say you have a term insurance cover of Rs. 1 crore. Here, you can decide how this money will be received by your nominee. It can be in the following ways,
- Rs. 1 crore on maturity
- 50,000 per month for 16.5 years
- 50 Lakhs as lumpsum amount and then Rs. 50,000 per month for the next 10 years.
Monthly payout option is a great option of the term insurance, especially if you are main bread earner of the family. It ensures that even in your absence the family gets a monthly income.
Also, if the nominee is not financially very sound, it might be difficult for them to manage a lumpsum amount.
- Waiver of Premium Benefit
This is one of the most beneficial features of term insurance.
If due to critical illness the policy holder becomes incapacitated, the premium for the rest of the policy term will be waived but the policy shall remain intact.
For instance, say Mr. Zian opts for a life cover of Rs 1 Crore and the annual premium is Rs. 25,000. After 7 years he is diagnosed by a critical illness due to which is unable to earn a regular income. In this case, the company will waive off the premium but the policy will still remain intact. This amazing feature helps to take the burden off the shoulders of the policyholder and family in the extreme times of distress and need.
- Life Stage Adjustment Feature
You might have taken a term policy while you were single. But with time as things change giving rise to the need for a higher lifecover. The amount you got covered would have been assessed keeping in mind the responsibilities at the moment, but with time you may have an evolved lifestyle which may require reassessment of the term insurance cover.
Thankfully, under the lifestage benefit of Edelweiss Tokio Life – Zindagi Plus you can increase the sum insured of your policy depending upon your requirement. Your sum assured can be increased during most important life stages like your marriage, the birth of your first child, followed by the birth of your second child and if you take a home loan.
It is not mandatory or restrictive that you can revise your cover amount at the aforementioned life stage only. You can assess your own life and find out the most important stage of your life and accordingly revise the cover. These are the three most beneficial features of the term insurance policy that make it an excellent choice to provide financial security for your family.
While purchasing a term insurance plan, assess these additional covers also which might prove to be beneficial for you and then take a wise decision.