April 16, 2024

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What Are the Flexible Features Of A Term Plan?

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A Term Plan
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The term insurance plan is a policy that provides financial protection to the policyholder’s family in the event of their untimely death during the policy term. When you buy a term plan, it offers several flexible features that can be customised per the policyholder’s requirements.

The best term insurance plan offers a range of features such as the policy term, the sum assured, term insurance premium payment frequency, premium payment term, add-on covers, and more. The flexibility of a term plan allows individuals to tailor their insurance policy to their specific needs

Now let’s see what features you can avail of when you buy a term plan online:

Online purchase

Nowadays, purchasing term plans are flexible, i.e., online or offline. Online term insurance refers to buying the term plan online, usually from insurers or comparison websites. Online term insurance is a relatively convenient process as compared to offline purchases. The same goes for different types of life insurance plans that can be purchased online.

The policyholder must fill out the application form online, upload the necessary documents, make the payment, and the policy will be issued.

TATA AIA term plans are easily available in the online mode which helps you save a lot of time and effort in the policy purchase process.

  • Mode of premium payment

The premium payment mode and frequency are important features of term insurance. These factors determine how and when the policyholder must pay the policy premium.

Generally, there are three modes of term life insurance premium payment – monthly, quarterly, and yearly. The policyholder can choose the mode that is convenient for them. However, it’s important to note that the premium amount for the monthly way is usually higher than the premium for quarterly and yearly modes due to administrative charges associated with the frequency of payments.

  • Premium frequency

The premium frequency refers to the frequency of premium payments during the policy term. The policyholder can pay the premium for the entire policy term or a limited period.

Some insurers offer a limited premium payment term of 5, 10, or 15 years after the policy remains active, but the policyholder doesn’t need to pay any further premiums.

  • Increased cover at the different life stages

The increase in coverage at important milestones is one of the beneficial term plan features as it allows the policyholder to align their coverage with their changing life circumstances, such as marriage or childbirth. In addition, this ensures that the policy provides adequate financial protection to the policyholder’s family in case of the policyholder’s untimely demise.

  • Term insurance riders

Riders in a term insurance policy are add-on benefits that the policyholder can choose to add to their base policy for additional coverage. These riders offer flexibility to the policyholder by allowing them to customise their policy per their specific requirements. Here are some of the common riders available in term insurance policies:

  1. Accidental death benefit rider: This rider provides the nominee an additional lump sum amount if the policyholder dies due to an accident.
  2. Critical illness rider: This rider provides coverage against acute illnesses, such as cancer, heart attack, kidney failure, and stroke, among others. If the policyholder is detected with a covered critical illness, the rider provides a lump sum amount to cover the medical expenses.
  3. Waiver of premium rider: This rider waives off the future premiums if the policyholder becomes disabled due to an accident or an illness, ensuring that the policy remains active and the coverage continues.
  4. Income benefit rider: This rider provides a regular income to the nominee in case of the policyholder’s demise, in addition to the lump sum amount.

The flexibility in riders allows the policyholder to customise their policy based on their specific requirements, ensuring that their coverage aligns with specific risks.

Conclusion

In conclusion, term insurance is an excellent option for affordable and comprehensive life insurance coverage. The flexible features of term insurance, such as policy term, sum assured premium payment frequency, add-on covers, and more, make it a customisable policy that can align with the policyholder’s specific requirements.

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