If you are looking for life insurance plans, there are many options to choose from. For the simplest and an affordable kind of life cover, you can opt for term insurance plans in India. These plans are mostly suitable for everyone, irrespective of the budget you are shopping for, because term insurance premiums are very nominal.
Among the different kinds of term insurance plans in India, renewable term insurance is one of the most commonly available kinds of life cover. Keen on finding out more about renewable term plans? Let us get started at the basics.
What is term insurance?
Term insurance, which is an affordable kind of life cover, offers long-term security to your family. In the case of a term insurance policy, the nominees are eligible for death benefit on the policyholder’s demise. This helps them lead a stable lifestyle even in absence of the policyholder. In other words, it helps the surviving members of the family stay on track and accomplish their life goals even in case of an unexpected incident provided you have planned for the cover well.
Term insurance plans in India gives the policyholder the benefit of a relatively high life cover in return for a nominal term insurance premium payment.
What is renewable term insurance?
Now that you have a good idea of what is term insurance, it is time to look at one specific kind of term plan – renewable term insurance. It may appear to be a complex term, but in practice, it is quite easy to understand. This is, of course, only valid if the policyholder pays the term insurance due premiums on time, as per the term plan’s T&C. Therefore, that gives you some idea of the basic framework of a renewable term plan. To understand how this kind of insurance works, it is essential to look at the practical side of things. Let us get into those details now.