Term Insurance Plan
Investors India|September 2020
All the features, benefits you need to know
Manish Jain
Term Insurance Plan

The foremost objective of life insurance is to act as a tool in replacing one’s income in the event of the death of the breadwinner in the family. And, it is best met through a term insurance plan which is a low-cost, high cover insurance plan. A pure term insurance plan ensures that the death benefit in the form of sum assured is paid to the nominees if the life insured dies within the policy term. If the policyholder survives and outlives the term, nothing gets paid as maturity paid. The premium paid in a term insurance plan, therefore, is primarily towards the cost of insurance or the mortality charge in the policy.

How term plan works

As the name goes, the term insurance meaning is that the plan provides risk cover or life coverage for a fixed term. A term insurance plan has a fixed term and the policyholder needs to pay premium regularly till the end of the term. If the policyholder dies before the end of the term, the death benefit is paid to nominee and if policyholder survives till the end of policy, there is no maturity value.

Simply put, term insurance plan is a pure risk cover. That is, one needs to pay the premium and forget about it. Only the dependents will get an amount equal to the sum assured if the death of the insured happens within the policy term. Since they do not offer any returns, the insurance company charges you only for the cost of insurance, making term insurance the cheapest. All this because the idea is to have a replacement corpus that will protect your assets from distress sale.

Esta historia es de la edición September 2020 de Investors India.

Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.

Esta historia es de la edición September 2020 de Investors India.

Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.

MÁS HISTORIAS DE INVESTORS INDIAVer todo
Indians are Developing Weak Bones
Investors India

Indians are Developing Weak Bones

In India, 1 out of 8 males and 1 out of 3 females suffer from osteoporosis, making India one of the largest affected countries in the world.

time-read
5 minutos  |
December 2024
"The strategy behind the Tata India Innovation Fund centers on identifying companies that are driving transformative or incremental changes through innovation"
Investors India

"The strategy behind the Tata India Innovation Fund centers on identifying companies that are driving transformative or incremental changes through innovation"

Yes, we certainly believe innovation is a powerful theme with immense potential for the coming years, and we are excited to bring it to our investors.

time-read
4 minutos  |
December 2024
What is Hybrid Mutual Fund?
Investors India

What is Hybrid Mutual Fund?

Hybrid Mutual Fund is a combination of more than one type of fund. While they invest in shares of companies listed on the exchange, like equity funds.

time-read
4 minutos  |
December 2024
Should you invest in dynamic bond funds?
Investors India

Should you invest in dynamic bond funds?

Dynamic bond funds have delivered a category average return of 8.68 per cent over the past year, making them the fourth best-performing category, following long-duration funds, constant maturity gilt funds, and gilt funds. With interest rate cuts yet to begin, these funds remain a viable option for investors seeking to benefit from possible rate reductions.

time-read
3 minutos  |
December 2024
The Multicap Solution to India's MultiDimensional Growth
Investors India

The Multicap Solution to India's MultiDimensional Growth

India is entering a transformative era of economic growth, backed by a unique combination of demographic strength, infrastructure development, and rising global prominence.

time-read
2 minutos  |
December 2024
The Long-Term Benefit of Investing in Children's Future
Investors India

The Long-Term Benefit of Investing in Children's Future

A child is the most treasured part of any parent's life, and naturally, we want to give them the best of what the world has to offer. This often means not only ensuring we can meet their needs but also nurturing them to pursue their unique aspirations. Each child has their own dreams and challenges, making the early years critical as they lay the foundation for a healthy and fulfilling future.

time-read
2 minutos  |
December 2024
ASK THE EXPERT
Investors India

ASK THE EXPERT

Ques. One of my friends told me that your company provides detailed Retirement plans. I want to know what is the procedure to get my Retirement plan. I will be retiring in March 2025. R.P Gupta, Noida

time-read
3 minutos  |
November 2024
How to Naturally Reverse Fatty Liver Disease
Investors India

How to Naturally Reverse Fatty Liver Disease

The liver, located on the upper-right side of the abdomen, is the body’s largest internal organ and plays a critical role in detoxifying the blood and processing nutrients.

time-read
2 minutos  |
November 2024
Banking sector which has underperformed in the last two years, now offers a favorable risk-reward profile
Investors India

Banking sector which has underperformed in the last two years, now offers a favorable risk-reward profile

Do you think the market is overpriced? Is yes, should investors refrain from investing in index schemes at the current valuation?

time-read
5 minutos  |
November 2024
India will continue to enjoy benefits of a close US relationship and trade will continue to grow
Investors India

India will continue to enjoy benefits of a close US relationship and trade will continue to grow

Q1. The US elections are said to be one of the closest till date, what impact will the election of a Republican / Democratic party have on the US economy and how is that going to affect India in the short as well as the long term?

time-read
3 minutos  |
November 2024