Term insurance is one of the most popular types of insurance scheme in the market. A term insurance plan provides protection in the form of financial assistance to your family. It pays a certain sum to take care of your family’s financial needs in case of your unfortunate demise.
Term insurance is a contract between the insurance company & you. According to this contract, in case of your death, your family will receive a large cover amount. This cover amount is decided based on the yearly premium you pay & also many other factors. The reason you need to buy health insurance is because life is uncertain. You might be the sole breadwinner of the house. You might also have car, bike or home loans on you. In case, anything happens to you, term insurance will take care of your family financially, in your absence.
Generally, the term insurance plan's premium during the time when you buy the policy remains the same throughout the tenure of the policy. However, the premium might increase if you add more add-on rider policies for an extensive coverage.
If a person has already bought a term insurance policy & it was issued to that person while he or she was a non-smoker, and if the person now starts smoking, it won't increase your premium prices. However, this may differ from plan to plan & insurer to insurer.
Smoking is dangerous as it leads to many health problems. A smoker always has a higher mortality rate as compared to a non-smoker. Hence, a smoker's premium will always be high compared to a non-smoker. A non-smoker enjoys good discounts on policy premiums.
Private insurance organizations are owned by particular private funds or entities. While government insurance organizations are owned solely by the government. Sometimes, a government insurance company may have a higher premium as compared to a private insurance company. However, a government insurer may also have a higher claim settlement ratio as compared to a private insurer. This information isn't absolute & may differ from policy to policy & insurer to insurer.
Every insurer conducts risk assessment in a different way. It then decides on its premium accordingly. A same insurer may offer different premiums for the same policy to two different people because of its risk assessment of both the individuals. Also, there is sometime's a possibility that a company's operational costs are also added to its policy premiums.
Yes. Accidental death is covered in term insurance & the family will receive the pay-out amount. However, the insurance company will do its due diligence & investigate the entire situation before settling the claim.
Yes, if during the term of the policy, the policyholder dies outside India, the nominee does receive the pay-out. However, this compensation will be as per the guidelines of the policy & also depends on the individual policy & insurer.
Some insurance companies provide survival benefits if a person doesn't die. These benefits can be returned in the premium amount. However, one may have to purchase a rider regarding the same.
Yes, it's legal in India that a person can have multiple term insurance policies.
Accidental death caused by drugs or intoxication isn't covered. If a person dies while being involved in a criminal activity, he isn't covered. Accidental death while being involved in adventure sports is not covered.
Yes. However, an NRI should also enquire whether the plan that they buy from India covers their country of residence.
Generally, the term insurance plan's premium during the time when you buy the policy remains the same throughout the tenure of the policy. It does not fluctuate. However, the premium might increase if you add more add-on rider policies for an extensive coverage.
People with lifestyle diseases or life-threatening habits have a higher mortality rate. Hence, they are high risk individuals. As a result, their term plan premium will be always higher as compared to those who do not have any lifestyle disease or life-threatening habit.
Yes. People with bad habits like smoking or drinking have a higher mortality rate. Hence, they are high risk individuals. As a result, their term plan premium will always be higher.
Yes. However, this may differ from policy to policy & insurer to insurer. Some term plans cover accidental death. While other plans may require you to buy an add-on rider for accidental death benefit.
In case of the policyholder's death, the nominee has to inform the insurance company within a span of three months. After this, the insurance company will ask for all the relevant documents & conduct its investigation. While conducting an investigation, an insurance company relies on records, interviews & evidence. It then decides whether a claim is truly legitimate or it is illegitimate.
Riders are separate add-on policies that you can buy along with your main policy. Riders offer extra coverage. For example, Critical Illness rider can be purchased along with the main term insurance policy. In case during the policy term, you are diagnosed with a critical illness, you received a lump-sum amount that was pre-decided to carry out the medical expenses of your critical illness. Every insurer has its own list of critical illnesses that it covers.
The tenure of your term policy is generally decided by the insurer. If you are a 30 yr old buying term insurance, your policy term can be the next 50 years. If you are a 50 year old buying term insurance, your policy term can be the next 35 years. However, in extreme cases, a senior citizen may purchase a term insurance & can also get a tenure of up to the time he becomes 99.
It simply means if you die, your family gets the pay-out & if you survive, you get back the premium amount of all the policy years.
There are deductions under Section 80C for the term insurance premiums that you pay. You can get deductions of up to ₹ 1.5 lakh under Section 80C. The benefit under Section 10 (10D) is given which includes tax benefits extended to the death benefit given to the nominee.
There can be several reasons for claim rejection. These include incorrect details submitted, failure to submit all documents, failure to update nominee info, policy lapse due to premium payment failure & even hiding important information.
Death by suicide is generally covered by most term insurance plans because the objective of term insurance is to protect your family financially in case of your death.
To increase your policy's term plan coverage, one can either upgrade to a fresh new policy or select a term plan with life-stage increment, or even buy increasing term coverage.
Yes, you can add multiple nominees to a term insurance plan.
In such a case, the pay-out amount will be paid to the nominee's heir or the policyholder's successor.
No, it's not covered in most term insurance plans.
As long as they remain profitable.
If a private insurance company has to shut down, it has to merge with a new insurance company so that the policyholder's benefit continues.
IRDA stands for the Insurance Regulatory and Development Authority of India. It's a supreme entity that conducts the supervision & regulation of the entire insurance sector in our country. IRDA's main objective is to protect the policyholder's interest & ensure the insurance industry's growth in our country.
Official Photos, Medical Documents, Income Proof, Address Proof, Age Proof & ID Proof.
Coverfox is an IRDAI authorized insurance broking firm. It started as a website back in 2013, with an aim to make insurance simple.
Coverfox helps you with choosing the right insurance plan. It also helps you to manage your insurance along with claim settlement assistance.
The executives at Coverfox guide you in the entire claim settlement process.
If you directly go with the insurer, it will be a lengthy and tedious task for you. YOu will have to run a few errands, pay multiple visits to the insurance company, manage all the documents by yourself, conduct the physical delivery of the documents and even go through the hectic and tiring process of claim filing by yourself. Coverfox simplifies things for you. It helps you choose the right plan and then you can buy the plan in a few minutes enjoying an entirely paperless process. You even receive claim assistance from Coverfox.
