Healthcare prices have been increasing for the past few years and the general standard of living one affords oneself with has begun to cost more and more money over the past few years. The Coronavirus pandemic has only made these expenses more pronounced. People are advised to avail of a layer of financial protection such that they have some financial security for themselves as well as for their family.
What is term insurance & how does it work?
Term insurance serves as one of the most budget-friendly forms of life insurance available in the market today. By paying a premium, individuals are provided with coverage for the time period that’s been specified in their term insurance plan of choice. Should they die within this specified time frame, their beneficiaries/nominees are entitled to a death benefit which is payable by the insurance company that issued the term insurance policy.
What is a term insurance premium?
A term insurance premium refers to the amount of money paid by the insured individual. This premium varies based on the sum assured the insured individual seeks to ultimately avail from the term insurance policy along with other factors like age, medical history etc. depending on the terms and conditions specified therein.
How to pay a term insurance premium virtually / online
Buying term insurance and paying its premiums has never been easier with the aid of the internet. Term insurance payments can be made online in the following ways –
• Visiting the Insurance Company’s Official Website
Here, net banking and credit and debit card payments allow for the term insurance premium to be paid in a timely, easy manner.
• Mobile Wallets
Insured individuals are entitled to pay premiums with the aid of payment enablers made possible via an SMS or a phone call as made available by insurers.
• Electronic Clearing Systems
These operate in a fashion like that of standing instructions mentioned above. By turning this service on, premium payments are deducted directly from the insured individual’s bank account of choice on the date that they are required to be paid. Individuals can register for the same by submitting an ECS mandate form in addition to a canceled cheque a month prior to the premium date being owed.