Short Term Disability Insurance - Short term disability insurance is a type of insurance plan designed to compensate for the lost income due to a disability
Buy a term plan and secure your family
In case the insured person passes away within the determined time period of the policy, and the policy has been active in that period, then he or she will get the death benefit.
When compared to a permanent life coverage plan, term insurance is less expensive. It has no cash value, unlike the majority of life insurance. Simply put, death benefit is the only guaranteed value that you receive from the policy.
Keeping our promise, we have explained to you what term coverage is in merely 100 words.
For those of you who want to know the details of this category of life insurance, keep reading.
A term plan is amongst the most comprehensive type of financial protection. From rentals to household expenses, it will assist your family in fulfilling their financial needs even when after you are not there with them.
While buying a term plan, it is important that you make a well-informed decision about the life cover that you select.
There are a few important things that must be considered while selecting the life cover and term plan you are going to opt for.
Here are some of the useful features of term life insurance.
In the case of some providers, you get a cover till the time you are 80-85 years old; however, you do not have to continue your premium payments till then. You have to pay only until you are 60-65 years old. For the subsequent years, you can relax. But, you must remember that these age limits may vary from one insurer to another.
If you’re an earning member of your family, have you ever given a thought on how will your family survive when you pass away. A term plan helps you in ensuring a tension-free future for your family. It provides high life coverage at very small amounts of premium.
Usually, the three top causes of death can be accidents, illness, and disability. When you have these three covered, then you can be at peace because your dependents can live a normal life even when you’re not around to take care of them and their needs.
Term plans are quite flexible in nature. The payment of policy cover is done in exchange for a premium amount. If you stop the payment of premium, your risk cover will cease. Since there is no element for saving, nothing will be payable to the insured.
Term insurance does not include survival or maturity benefit; it only offers death cover to the family of the insurer.
There are different kinds of term policies, each with its own set of pros & cons, based on the needs of the insurance-seeker. Here are some of these types.
Under this type of term policy, the same amount will be paid for the claim, irrespective of whether the claim has been made during the initial period of the policy or during the end of the term. Moreover, the payments remain the same, and there will only be one payout.
This kind of term policy has a particular number of years before getting expired for being converted into whole life insurance. The main benefit of this type of term plan is that you do not have to go through a medical check-up. Moreover, no health condition is considered while the term policy gets converted into permanent life insurance.
Under this term policy, the amount of death benefit decreases with time. The objective is matching the reduction in term benefit to the outstanding mortgage of the insurer. The basis of this strategy is that you would not need much life coverage if you have less amount of mortgage debt. However, the payment of premium remains constant even when the benefit reduces.
This policy is the opposite of the decreasing term policy as it allows the insurer to increase the death benefit with time. The premium will also increase; however, it allows the policyholder to make lower premium payments in the early years of their life when there are a lot of expenses and bills.
To Sum Up!
The illness or death of the breadwinner of the family may cause a lot of mess in the lifestyle as well as the future of his or her family. Term insurance offers financial support to the insurer’s family in case of an emergency such as untimely or sudden demise of the insurer.