As the collective standard of living of society has risen, so have expenses involved in maintaining this very lifestyle. Accompanying this is the ever-rising costs associated with healthcare. These are uncertain times we are presently living in. The 2nd wave of the Coronavirus pandemic which has taken the country by storm has only compounded the sense of uncertainty faced by all presently. By availing of a form of financial protection, individuals can have some form of coverage should the need arise. Term insurance plans are therefore viable as they seek to provide insured individuals with a financial safety net.
What is term insurance and how does it work?
Term insurance falls under the umbrella of life insurance and is in fact one of the affordable types of life insurance available in the market. Those who seek out this form of insurance select a policy term within which they’d like to avail for a certain coverage and pay a premium. This premium paid varies and depends upon the sum assured sought after by the insured individual and other conditions which we will talk about later in this article. In the event that this individual dies within the specified time frame mentioned in their term plan, their beneficiaries/ nominees are entitled to a death benefit which is paid for by the insurance company. Individuals seeking to purchase term insurance can take advantage of a term insurance premium calculator which helps provide them with an estimate of what their premium ought to be. They are required to submit information pertaining to their age, gender, medical history, lifestyle preferences, current income, the anticipated annual rise in income, and anticipated retirement details in order for the calculator to provide them with an estimate.