Term Insurance: Term insurance is a very easy and affordable way to ensure financial security to the family in your absence. One can get a cover of up to Rs 1 crore even with a minimum annual premium of just Rs 7441. Under a term insurance plan, the sum assured is paid to the nominee after the untimely death of the insured during the policy term. However, the problem arises when the nominee does not understand the investment i.e. after getting the sum assured amount, the nominee cannot use that amount properly.
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In such a situation, financial security is not ensured. However, some insurance companies also provide this option to their customers so that if the nominee does not have enough understanding of investment, then the sum assured amount is given to them in installments instead of lump sum. The post-Corona epidemic has become more uncertain, so the craze of term insurance plans is increasing rapidly. During the epidemic, new health-related hazards came to the fore, due to which people’s interest in buying this plan increased.
Option to pay in 10-15 years instead of lump sum
If the nominee does not understand the investment, then in such a situation, you can buy those policies of some companies under which the lump sum sum assured is not paid on the untimely death of the insured. Under this type of policy, the entire amount is paid to the nominee over a period of 10-15 years. This amount is given to the nominee every month. It can be understood with an example that some insurance companies will give about 10 percent of the sum assured i.e. if there is a term insurance of one crore, then 10 lakh rupees will be given to the nominee on the untimely death of the insured. After this, every year 6-6 percent of the amount will be given to the nominee in the next 15 years.
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There are two options available
If you opt for a term insurance policy instead of lump sum, under which there is a provision to pay the nominee in installments instead of lump sum, then you may have to pay a higher premium. Apart from this, the insured has another option that if he wants, he can make such a provision that instead of a fixed amount every month, the monthly installment increases every year. However, its premium will become more expensive. The advantage of opting to increase the monthly installment every year is that it will help in combating inflation.
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