10 Amazing Benefits of Dry Dates (Chuara) in Daily Life | PayBima
1046
4 min read
Term insurance and traditional life insurance are two most common insurance policies that people use to secure the lives of their loved ones. As such, no one can predict life and what is going to happen in life. The appearance of an unfortunate incident can take place any time in life creating great financial and emotional havoc. That is the reason why the head of the family seeks to have a life insurance policy to support the family in the event of their unfortunate demise.
Life insurance is a great way to help manage monetary risks by covering the insured and his/her family in times of emergency. Not only this, but term life insurance also helps under section 80C in tax deductions of up to Rs. 1.5 lakh.
Now, term and life insurance are two most common types of life insurance policies. On one hand, term plans are pure protection policies that provide death benefits to the nominee of the insured. On the other hand, a traditional life insurance policy allows both maturity benefit as well as death benefit. However, term insurance is cost-effective and most affordable of all life insurance types.
Here is a list of factors to take note of before you make your choice between a traditional life insurance or a term insurance.
The death benefit that is offered to the nominee of the insured in case of an unfortunate demise of the policyholder is the major cause of difference between the traditional life insurance and term life insurance. In term insurance, death benefit is received when the insured dies during the term of the policy, while if he/she outlives the term, the benefit is not provided. On the other hand, in case of traditional life insurance, the policyholder is entitled to maturity benefit as well as death benefit, thereby allowing double benefits. However, you may also note that as compared to the traditional life insurance, the amount of death benefit offered under term insurance policy is much higher.
Another factor to consider is related to policy surrender. In case of term insurance, the policyholder can surrender the term plan easily without any hassle. However, this may not be that easy in case of traditional life insurance plans. Further, the insurer of your term plan might allow you to convert a term insurance plan into an endowment plan at an increased rate of premium. In traditional life insurance if the policyholder does not pay the premium, they lose all the benefits under the policy. Also, if they surrender the policy, they even lose out on the maturity benefits under the traditional life insurance policy.
If you talk about term insurance, it is an easily affordable kind of life insurance that allows good coverage at low cost of premium. On the other hand, the best traditional life insurance plan would require the policyholder to pay a high premium if he/she wants to receive high coverage.
The coverage under term insurance is offered for up to a particular age depending on your annual income, financial duties and so on. The maximum age limit for term insurance coverage is around 80 years. Conversely, in the case of a traditional life insurance policy, you can enjoy coverage from 5 to 100 years of age.
Also Read: Ways to Increase Cover Option In Term Insurance
Conclusion
If you consider the benefits of traditional vs. non-traditional life insurance products, both of them have their own unique advantages. However, one common benefit between both the plans is related to income tax, which is available under section 80C and 10D of IT Act, 1961.
As far as the premium payment condition is concerned, it can be paid on a monthly and quarterly basis as well as semi-annual and annual basis. Added coverage can also be opted for adding riders to your plans including critical illness rider, premium waiver rider and so on at an extra cost.
As we all know that life insurance is a very significant investment that is done to keep your family secured monetarily in your absence. Thus, it is important to consider the above factors well while choosing the policy. Hence, do keep the parameters mentioned above in mind to make the right decision of life insurance policy purchase.
Browse PayBima Blogs to read interesting posts related to Health Insurance, Car Insurance, Bike Insurance, Term Life Insurance, and Investment section. You can visit PayBima to Buy Insurance Online.
PayBima Team
PayBima is an Indian insurance aggregator on a mission to make insurance simple for people. PayBima is the Digital arm of the already established and trusted Mahindra Insurance Brokers Ltd., a reputed name in the insurance broking industry with 17 years of experience. PayBima promises you the easy-to-access online platform to buy insurance policies, and also extend their unrelented assistance with all your policy related queries and services.
Term insurance is an efficient and affordable way to protect a family's financial future against the sudden mishaps of life. However, if, for any reason,.
Updated on Dec 23, 2023 Investment planning is as crucial as earning a livelihood. For the key earning member of a family, it is all.
In today’s world, it is difficult to survive without earning and to earn, one needs to stay fit and fine without any disability. Thus comes,.
Do you know that at present, there are about 24 term insurance providers in our country, each claiming to be the best term insurance company in.
A life insurance policy secures a family monetarily if there is untimely demise of the policyholder during the policy term. If diagnosed with a terminal.
As the name suggests, Canara HSBC life insurance company was formed with the collaboration of three prominent financial establishments namely Canara bank, HSBC life insurance.
A term insurance plan is like a security that safeguards a family financially in the most unfortunate event of demise of the family head. Such.
When it comes to insurance, LIC is the most trusted insurance company in India. With a huge customer base, this largest insurer is also one.
LIC of India is one of the most trusted brands when it comes to securing the financial future of your family and dear ones. Let.
While we make plans and keep chasing our dreams, seldom do we realize that life is unpredictable. No matter what we are doing, and how.
Speak to our advisor
Mahindra Insurance Brokers Limited (A Mahindra Group Company) - Unit-202, A-Wing, 2nd Floor, Amiti Building, Agastya Corporate Park, Kamani Junction, LBS Marg, Kurla West, Mumbai - 400070. Tel: +91 22 66423800
Licenced by IRDAI License No. 261; License Validity : 17-05-2025; Category : Composite Broker; CIN : U65990MH1987PLCO42609 Member of Insurance Brokers Association of India (IBAI).
Insurance is the subject matter of solicitation.
For a seamless experience, use the latest version of Chrome/Firefox/Internet Explorer.
Copyright © 2024 Mahindra Insurance Brokers. All Right Reserved.
Verify your number to activate your best premium offer
Please enter the OTP sent to XXXXXX 4099 to continue