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 Rider
If the insured were to die, the sum assured under the term rider is payable to the nominee.Apnainsurance.com Research Bureau
21 Dec 2007
The
term rider acts in the same manner as a term life insurance policy - if the
insured were to die, the sum assured under the term rider is payable to the
nominee. In the event of death of the insured, this rider provides for a
payment equal to the sum assured or a pre-determined term rider sum defined in
the life insurance policy. The term rider is a pure insurance product and is
therefore a low-cost benefit. Insurance companies thus have a limit to the
maximum sum assured under this rider.
See also:
Accidental Death Benefit RiderAccidental Disability/Dismemberment Benefit Rider
Critical Illness Benefit Rider
Guaranteed Insurability Option Rider
Hospital Cash Benefit Rider
Life Guardian Benefit Rider
Waiver of Premium Rider
FAQs on Life Insurance Basics
Life Insurance FAQs on Premiums
Life Insurance FAQs on Claims
Life Insurance FAQs on Insurance Company and Insurance Agent