Term Plan is an insurance product that provides financial shelter to the beneficiary of the policyholderfor a limited period of time. The beneficiary, who normally is a family member, can claim death benefits in case of demise of the policyholder from an insurance company. This is because the best life insurance term plans are designed to protect the family of a policyholder financiallyduring the term of the policy. The payout of the benefits can be lump-sum, monthly or a combination of both depending on the requirements. This makes term insurance plan one of the simplest ways to financially secure ones family in your absence.
What are the benefits?
There are numerous benefits to having a life insurance term plan: Death benefits paid in lump-sum can be used to cover financial liabilities Financial support is provided to the policyholders beneficiaries in form of lump-sum or regular payments over a period of time It is very affordable as premium payments are lower than other policies. Premiums paid towards the insurance plan provide for tax benefits therefore helping you save. The best life insurance term plan policies are also quite simple and easy to understand as compared to other policies.
How much life insurance term plan is needed?
This is dependent on a number of factors, but as a rule it should provide 7 to 12 times your gross annual earnings. Other factors on how much life insurance term you require include The size of your family and the current insurance costs. Life insurance term plan can help you cover your family for a lot less than you may be currently paying Income generated as the bread earner. This policy allows you to do more with less and is ideal for large families with low income. Beside these factors, a little research can provide other life insurance term plan online.
Why buy a Life insurance term plan?
Apart from prudent financial planning, below are some of the most common reasons why you need an insurance term plan It helps to ease disruption caused by untimely death to the policyholder due to natural or accidental causes. It provides tax benefits during payment of premiums and also when receiving payouts Insurance provides for ones family’s future needs in the absence of the bread earner Although not a replacement to the lost loved one, the bestlife insurance term plans provides a soft landing for the beneficiaries. It offers the support that your family needs easing their burden and enhancing your legacy as a provider even after your demise.
Who needs life insurance term plan?
Anyone with an income and has dependents should apply for a life insurance term plan online. However, to ensure that this is the right policy it is advisable to speak to an insurance agentand compare life insurance term plans before purchasing a policy. As a good financial planning practice, all income earners should have a plan to deal with future uncertainties.
How to make a life insurance term plan claim
As a beneficiary of an insurance term plan, one has to claim for benefits failure to which the policy will remain unclaimed. The steps to follow to make a life insurance term claim are; Know the insurance policy provider: Having the policy documents or knowing the company that sold the policy is the first step to making a claim. If the company is unknown and policy documents are unavailable, reach out to the insurance agent who sold the policy and they will assist you. Have a death certificate: Having the death certificate of the policy provider is necessary when filling out claim forms. Fill out necessary paperwork: Fill in the necessary claim forms and send. The claim forms may be online or may require physical pickup and drop off Receive your collection: Most insurance companies pay promptly once verification of claim forms has been completed and payment has been approved. Claims may require having a special account that you draw from but this step is normally guided by the insurance company. It is as easy as purchasing the plan.
Updated on Jan 27