What is term insurance || benefits of term life insurance || LIC term plan -apnipolicy.com
As I have mentioned the importance of insurance in my last blog today I will enlighten you all on what is term insurance and what are the benefits of term insurance and term plans offered by LIC.
*link to my previous blog* — Importance of insurance in 2021.
What is term LIfe Insurance ?
In simple words the insurer gives the insured person a death benefit coverage for a long period of time according to the amount of sum assured taken by the policyholder and in the case of death of the policyholder the nominee gets the sum assured money with additional bonuses.
In the case of maturity the insurer doesn’t get the maturity amount he or she can only renew the plan, the financial benefit is given only in the case of death of the insured person.
Term life insurance is a very good option for the young people who have a family dependent on them as it offers a really good coverage and on the death their family will get financial assistance.
Now we know what term life insurance is, let’s move forward and see the benefits we get with it.
Benefits of term life Insurance
1- Savior in hard times — On the death of the insured person his or her family gets financial assistance according to the sum assured amount of the insurance policy.
2- Financial Investment — Now you all must be thinking “how is it a financial investment ?” because we don’t get the money on the maturity of the policy.
Yes, we don’t get the money on maturity but we all know that one day eventually every person will die so if you are insured with the term insurance till your last breath you will benefit your family with a good amount of money even on your death.
3- Investment on yourself — By taking a term insurance you are investing in yourself as the future is very uncertain and we don’t know what will happen next so it will be an investment on yourself.
LIC Term Plan
In the Indian market there are many health companies and hospitals offering the term insurance but among all of them the best one is the LIC,
Because LIC is a government company and its primary objective is providing the best amount of return to its customer rather than earning the profit whereas the primary objective of any private company is always earning the profit then the customer service.
And Investment in LIC is very safe. You can invest in the LIC blindly as it is a government’s company. The chances of its getting shut down is like “zero” whereas the chances of getting a private company shut down is very high as the market is always very uncertain.
Currently LIC offers only one term plan and that is “Jeevan amar — 855”’
This plan is very customisable according to your need and the amount of premium payable and few of the terms and conditions are little different for the smokers compared to non smokers.
LIC offers a discount on premium to females on this policy.
Term -
10 to 40 years
Eligibility Criteria -
Minimum age — 18 years
Maximum age — 65 years
Minimum sum assured — Rs.25,00,00/-
Maximum sum assured — No limit.
Premium-
The premium can be paid in Four options -
1- Single premium payment — The whole amount of premium is paid only once at the time of purchase of policy.
2- Regular payment — Under this the person pays the amount of premium throughout the term of policy.
3- Limited premium (policy term — 5 years)- Under this the insured pays the amount of premium for total term years minus 5 years.
For ex- if the term of policy is 20 years the person will pay the amount of premium for 15 years that is (20–5 years).
4- Limited premium (policy term — 10 years)- Under this the insured pays the amount of premium for total term years minus 10 years.
For ex- if the term of policy is 20 years the person will pay the amount of premium for 10 years that is (20–10 years).
If you want to know the amount of premium and other things about the policy according to your age and gender click here — term insurance “jeevan amar” by LIC and fill the form team apnipolicy will get back to you shortly.
