Though Insurance is a matter of solicitation,Covid-19 taught us the need of insurance! Many Families lost their loved ones by not protecting their life through “Term Insurance”
Why “Term Insurance”?-Many People object to take term insurance as they don’t provide survival benefits! They are looking at “Return of Premium” but they are not looking at the “Risk Coverage”.
Taking Insurance means protecting your family from undue risks, then why are looking at “Return of Premium”?
We all take vehicle insurance as it is mandatory! Vehicle insurance is also a part of term insurance, but here risk applies for “vehicle” where in term insurance risk applies to “life”.
Would you expect return from vehicle insurance?Obviously No! Then why for “Life Insurance”? The final point of taking insurance is protecting from any unfortunate events! Life is uncertain! No one would like to die, but in any case if you may be sentenced with death, your family would survive with the term cover you opt
Comparison Between Endowment and Term Policies–
|Endowment Policy||Term Policy|
|1.Premium is very high||1.Premium is very low|
|2.Risk coverage is limited(Very low)||2.Risk Coverage is very high|
|3. There are Survival Benefits||3.There are no survival benefits|
|4.Return at maturity is very low when compared to inflation||4.Return is very high(in case of demise)and beats inflation|
|5.Available through insurance agents||5.Even though available through agents,online policies are cheaper|
|6.Endowment Policies won’t suffice your family needs||6.Term Insurance protects their loved ones from financial crises|
Term Insurance are available very cheap and protects your family in the absence of the breadwinner! But be ensure that you should disclose all your personal, health and wealth information without hiding the facts!
Before taking term plan, check “claim settlement ratio” of the insurance provider and conclude which insurance provider should you opt for!
Don’t compromise on the claim settlement ratio of the insurance provider. It is better to take term plan from 2, 3 companies with good claim settlement ratio. Don’t hide your personal information especially health history to avoid rejection of the claim