As suggested by the name, a 5-year term life insurance policy offers you coverage for a term of 5 years. Probably the shortest kind of life insurance, these plans are a great way to keep the future of your loved ones secure, so that even if something happens to you they would not be in a financial lurch.
A 5-year term life insurance policy works quite similarly to regular term life insurance. The policyholder pays a premium that can either be a single-premium or a regularly paid premium ( paid annually, half-yearly, quarterly, or monthly) that is chosen by the policyholder.
Depending on the insurance company opted by you you can purchase the 5-year term life insurance policy online as well as offline. There are many benefits of a 5-year term insurance plan that make it worth considering.
Here are the highlights:
A term insurance plan provides your loved ones with financial security. Visit www.paybima.com today for an easy and simple term insurance comparison, which would allow you to make the right decision.
When you make a purchase it is important to understand the proper use of the product/ service. This understanding becomes all the more crucial when you are planning to invest your hard-earned money in a term life insurance policy. It is through this policy that you intend to secure the financial future of your loved ones. Thus, you must know about everything that the term insurance policy covers and does not cover.
When talking about term life insurance most people feel that death under all circumstances is covered, but it isn’t so. There are certain situations under which the death benefit is not paid out to the nominee. It is important to know about such scenarios.
Some insurance companies also make certain exceptions when it comes to the insured individual’s lifestyle. If you regularly consume alcohol or are a smoker, it is highly recommended that you disclose this before purchasing the policy. If you are looking for a term life insurance policy to help secure the future of your family members, visit www.paybima.com today and make a well-informed decision after a detailed term insurance comparison.
Portability in insurance means that as a customer you can move from one insurance provider to another without terminating the policy. You would have the right to make a transfer of the policy without having to let go of the policy benefits. However, there is no porting benefit in life insurance plans in India yet.
Term life insurance plans are considered to be the foundation of a good financial plan. Insurance companies offer various benefits and services to their customers, and most individuals select a plan after a detailed term insurance comparison. However, sometimes it may happen that after making the purchase you realize that some other company is offering better options or maybe you are not completely satisfied with the existing insurer.
So far, the Insurance Regulatory and Development Authority of India allows portability only in motor and health insurance and not in term life insurance. Discussions have been initiated by the IRDAI to bring term insurance under portability as well, in order to encourage healthy competition and transparency. Portability allows a customer to switch to a different insurer easily.
However, you can always opt for another term life insurance plan to enhance your coverage. If you are thinking of purchasing a term life insurance policy, make sure you first visit www.paybima.com and learn about all the elements involved.
Life insurance offers certain adjustments that can be made in the plan details such as sum assured, the premium amount, and the period of premium payment. However, in the case of term life insurance such modifications are not possible. You can neither change the specifications of your term insurance plan nor port it to some other insurance provider.
As per the guidelines of the Insurance Regulatory and Development Authority of India, porting is allowed only in health and motor insurance. No such option is available in term life insurance, thus it is highly recommended that you make a well-informed decision before you take the plunge. Lapsing your term plan would leave you without any coverage and that is not recommended.
However, you can opt for a separate term life insurance plan if you wish to enhance your policy and once that is issued, you can choose to discontinue your previous plan. However, do remember that your premium would rise since your age would have increased. If you wish to purchase an additional term life insurance policy, please do visit www.paybima.com and along with the guidance from our insurance experts, make the best decision.
When you purchase a term insurance plan, you wish to safeguard the future of your family in case of an unfortunate accident. With the insurance, you can ensure that tomorrow even if something happens to you your loved ones would not be in a financial crunch. If you are the primary bread earner in the family, having adequate coverage becomes crucial. However, there are times when you feel that the cover that you have may no longer be enough to support your family’s growing needs. Under such circumstances, you have the following options.
These are some of the ways to enhance your existing term insurance coverage.
A term insurance plan has two main features, one of them is your cover amount and the other one is the duration of your plan. According to financial experts, the duration of your term life insurance shall be more than you think you would need. This is because life is full of uncertainties and a longer tenure can be useful.
However, this should not be mistaken as a suggestion for taking the maximum duration available as it would demand high premiums (due to inflation) and can cause a financial crunch in your present life. Also, after a certain age, you may feel that you are less burdened by your family responsibilities and have fulfilled your financial goals.
So, if you are wondering what should be the duration of your term insurance plan, here are some points that you must consider:
While choosing the right duration of your term insurance plan may seem to be difficult, it really doesn’t have to be. Keeping the above pointers in mind will help you in chalking out a proper plan. Visit www.paybima.com for more expert guidance on term insurance.
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