A terms insurance plan is a type of insurance that financially helps an insured and his family in case if, he becomes permanent disable, suffering from critical illnesses and no more available due to accidental or natural death.
In simple words insurance company provides coverage for accidental and natural death, permanent disablement and critical illness. A person have option to opt only for death cover whether it is accidental or natural. If he thinks that he is able to pay more premium then he may also seek for additional benefits like permanent disablement and critical illness cover as per his capacity of premium paying.
It is important that term insurance plan provides only security, means it pays claims only in case of miss-happening to insured but it does not provides saving, means if policy duration expires insured will not get anything in terms of money. So it is very important factor while choosing insurance plan.
The main purpose of term insurance is to provide coverage for a higher sum assured in least premium. In case of accidental death the amount of claim becomes double in most cases as per the coverage provided by insurance companies. Insured can also opt for double sum insured in case of accidental death while purchasing term plan.
0 Reviews