A life insurance cover helps you secure the financial future of everyone dependent on your income in the event of your death. Nobody can help overcome the loss of a dear one, but imagine that along with this loss the surviving members of the family are hard-pressed to maintain their lifestyles because they were partially or fully dependent on the income of the deceased. Getting an adequate life cover is absolutely essential if the sum of the total value of your assets (other than the home you stay in) less your total liabilities (including any home loan, car loan or personal loan you might have outstanding) is less than 150 times your current monthly expenses. The shortfall would be the recommended amount of life cover you should seek. At ApnaPaisa, we help you reach out to a maximum of 5 service providers who will propose alternative plans that you can compare based on:
- Life Cover (also known as Sum Assured)
- Annual Premium
- Additional Riders Offered
Often customers get lured into combining their life cover requirements with an investment objective. We do not recommend this approach because it is always a lot more affordable to opt for a term insurance policy and invest the savings on the annual premium into any savings instrument of your choice - be it PPF, Fixed Deposits, Mutual Funds or even shares.
Term Life Insurance Plan
Term life insurance policies are the purest form of life insurance, as they do not offer any survival benefits, just death benefit. It is also the cheapest form of life insurance.Apnainsurance.com Research Bureau
20 Dec 2007
Term life insurance plans provide insurance cover for a specified period. The defining characteristic of this type of life insurance plan is the complete absence of survival benefit i.e. on maturity (surviving the term of the policy), you receive no money from the insurance company. Term life insurance plans are pure risk cover plans where only administrative expenses and mortality charges are built into the premium costs. Thus, term life plans are the purest form of life insurance.
In some term life insurance plans, the premium paid for the entire term of the policy is returned to the insured person on surviving the policy term. Needless to say, the premiums for such policies are higher.
See also:
FAQs on Life Insurance BasicsLife Insurance FAQs on Premiums
Life Insurance FAQs on Claims
Life Insurance FAQs on Insurance Company and Insurance Agent
Children's Life Insurance Policies
Endowment Insurance Plans
Money-back Life Insurance Plan
ULIPs
Whole Life Insurance Plans