3 Ds to Focus on While Buying Term Insurance
With the availability of numerous lucrative life insurance policies, term plans are often overlooked and undermined. As they only provide policyholders with a pure risk cover, one may choose to opt for other plans that have maturity perks. But many individuals fail to consider the features and benefits offered by a term policy at the most affordable rates. To help you understand what term insurance plan is and how crucial it is, go through the 3 Ds that you must focus on.
The primary purpose of a term policy is to secure the policyholder from the risk of death. In exchange for a life cover, the insured pays a set premium regularly. But the death benefit will only be paid out if the policyholder passes away during the policy tenure. Though many individuals view term insurance as a tax-saving tool, such a plan offers much more than just tax perks. When you consider term plans, you can easily opt for a high sum assured amount at an affordable premium rate to protect your loved ones.
In your absence, this corpus shall enable your family to be financially independent and manage their expenses without any trouble. In the absence of such backup, your dependents would be left to make ends meet with the savings accumulated over the years. This isn’t a lucrative situation as the family expense doesn’t just include the monthly expenditure or the school fees of your children. You also need to account for debts, loans, retirement savings, higher education for your children, and some more to maintain the lifestyle of your family. Such a large amount can be arranged with term insurance plans for a relatively cost-effective price.
But what if you get diagnosed with a major ailment? Is it included under the policy? Well, you can get it covered by purchasing a critical illness rider benefit. Such an add-on cover can be bought at the time of policy purchase. The benefit of adding a critical illness rider is that you can avail extended coverage over and above the features of the plan. Some major diseases covered are cancer, stroke, paralysis, loss of limbs, angioplasty, Parkinson’s disease, and many others.
In the event where you do not have this rider added to your policy, the treatment cost could weigh you down. With healthcare rates increasing in the country, the medical expense of treating a major ailment can be hefty. But with the rider, your loved ones shall receive a lump sum benefit in case you get diagnosed with any one of the critical illnesses mentioned under life insurance. Term plans with an add-on cover can go a long way in safeguarding any unfortunate risk.
Another possibility is of partial or permanent disability that can leave you without an income. In case you are the sole breadwinner of the family, then your financial condition can worsen along with the piling medical bills. So, to ensure that such a time doesn’t occur, you can combine your policy with a disability rider. In the event of partial or total disability, a lump sum benefit shall be paid out to your beneficiary. This corpus will be paid as a regular income to replace your monthly salary. You may also find the insurance company waiving off the future premiums to compensate for the financial loss. Therefore, you can enjoy a life cover without paying the premiums under the rider benefit.
With this, you must have understood how the 3 Ds namely death, disease and disability are crucial in term insurance. Due to the uncertainty in life, a mishap can come knocking on your door without a warning. Hence, it is best to have the right backup to safeguard your loved ones from untoward incidents. So, check out how much premium you need to pay by using a term insurance calculator and buy term insurance online to get insurance coverage today!