Term insurance plan is kind of insurance plan which offers cover for a stipulated period of time and in that period if something unfortunate happens to the person who is insured a predefined stipulated amount is given to the nominee or several nominees as the deed may define.
The premiums for term insurance plans are low as compared to other insurance plans that is because it has no investment component in it. Moreover, online term plans are even cheaper compared to other plans because it is cost effective and there is no agent and other costs involved. One should choose a right cover, there is no formula to calculate the cover amount but it should be considered taking into account future needs and debts repayments. It is also advisable that one chooses a sum assured which is 20 times his current annual income.
Term plans offer a lot of benefits which can help you in building a strong financial plan.
In today’s world, one also needs cover for critical illness along with a term plan. Critical illness is just like a mediclaim policy which can help you in your bad times. Critical illness is the one which involves substantial amount to be cured.
As per World Bank average life expectancy in India is 66.21 years one should plan taking term insurance plan accordingly. Taking a term plan for a longer period makes sense. For example – 35-year-old male takes a term plan for 35 years period ensures him for the future, if anything unfortunate happens to him insurer will pay his nominee.
A nominee is only paid in case of death and other critical illnesses are not covered. Total Secure + is a complete protection plan offered by Edelweiss Tokio Life which provides life cover and cover for critical illness at a very minimum extra cost. If someone is a sole earner in a family and is diagnosed with a critical illness this cover can prove to be of a great help.
A complete comprehensive plan would make more sense as it comes at a very minimal additional cost when compared to pure term plan, while providing a lot more benefits than a term plan.A strong financial plan is complete only when all the factors are considered into it like cover for medical/ critical illness. Total Secure+ provides cover for 35 critical illness plans. In case a person is diagnosed with any of these critical illnesses a predefined sum is given upfront so he can take action accordingly to get the treatment done from wherever he wishes to. He can utilise the sum assured for his family expenses, repaying outstanding EMIs etc. This lump sum amount will be provided on the diagnosis itself.
Another important aspect of Total Secure+ is that one can choose for how the death benefit should be paid to the nominee, one can opt for a lump sum payout or you also choose a payout option in installments of 30, 60, 120 and 180 months for a complete payout.
The plan offers complete protection under one umbrella of life cover and cover for critical illness. One can add riders to the plan as per the needs.