What is the term insurance plan, what are its features, how the term insurance plan is different from other life insurance plans and should take the term plan or not. What are the benefits of taking term insurance and how does tax avoid it. Also, what are some things to be careful when taking a Term Insurance plan.
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What is term insurance plan
Term Insurance Policy – Term Insurance Plan is a type of life insurance and it provides life cover for a defined period of time and if the insured dies during the term of the insurance policy, the death benefit will be payable to the nominee.
The term insurance plan has been specially designed in such a way that the needs of the insured’s family can be protected in case of death or uncertainty. It provides a set amount of coverage for a set time period. Simply put, the term of insurance and amount of insurance is determined when taking a term insurance plan.
What are the characteristics of Term Insurance Plan
In the term insurance plan, if the policyholder dies during the insurance period then the death benefit is given to the nominee. Premiums of term insurance policies are the lowest in all types of life insurance policies. Premiums are less in this policy because there is no investment component in it and the entire premium goes up to cover the risk.
On the contrary, a part of the premium in the endowment plan and money back plan goes into the risk cover of life insurance and the rest is invested. In the Term Insurance plan no maturity benefit is available on survival after the expiry of the policy term.
Pradhan Mantri Jeevan Jyoti Bima Yojana is also an affordable term insurance plan, while choosing your term plan, you can also pay attention to this option.
What should be considered when taking a Term Insurance Plan
Before taking a Term Insurance plan, these things should be taken into account:
- How good is the insurance company
- How many covers do you need?
- Examine the claims settlement ratio of the insurance company, how many percentages of the insurance claims disposed by the finance company were rejected.
- Inflation factor in premium and coverage benefits See also the insurance cover you are taking and for the period you are taking, so that your family’s needs will increase due to inflation in the coming time.
- Compare the terms and conditions of various insurance companies.
- You can also take a two term insurance plan from two different insurance companies, it will save you from one of the two companies in case of rejection of the claim.
- Also know how life insurance premium is determined.
- Term plan can take you online or offline. You may find the online plan cheaper.
Tax Benefit on Term Insurance Plan Premium paid for all life insurance policies has been exempted under Section 80C of the Income Tax Act, 1961.
Read on – Pradhan Mantri Jeevan Jyoti Bima Yojana
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Features of Pradhan Mantri Jeevan Jyoti Bima Yojna
Who can take this plan, can take it and its benefits. Also, all the details of this scheme in detail. It is an India government-backed life insurance plan that LIC and many other insurance companies run. There are many types of life insurance. This plan is a term life plan.
Prime Minister Jeevan Jyoti Insurance Scheme PMJJBY is a one-year life insurance plan that provides coverage for death and it is renewable year after year. Cover under PMJJBY is for death only, hence the benefit will be given to nominee only ie nominee. PMJJBY is a pure term insurance policy in which there is no investment component and only premium for death cover is taken. This means that whatever premium you deposit in this scheme goes completely into the cover of insurance and no part of it is invested. That is why the insurance holder does not get any benefit at the end of the policy term. On the death of the insured during the policy term, the nominee receives the sum insured.
Who can take PMJJBY
PMJJBY people from 18 to 50 years old can get life and life insurance is available in the scheme till the age of 55 years. This scheme is available to those with savings bank accounts who agree to debit the account from the premium to join the account to join automatically. The cover for this scheme is for one year and it has to be renewed every year.
How can avail Pradhan Mantri Jeevan Jyoti Bhima Yojana
Life cover of Rs 2 lakh is available per member per year at 330 rupees per year and it has to be renewed every year. All those Savings Bank account holders can join this scheme who meet the eligibility criteria of this scheme and pay premium of 330 rupees per year per person.
PMJJBY is administered through LIC and other Indian private life insurance companies. Anyone can contact their bank because the process of enrollment is associated with banks and insurance companies. The nomination process has been kept simple and easy. Generally, only one form has to be filled for this. You can also take it online.
Risk cover under PMJJBY is applicable only after 45 days of enrollment. In other words, the risk cover will start only after insurance companies have passed 45 days from the date of enrollment. However, deaths due to accidents will be exempted from this rule.
In Pradhan Mantri Jyoti Jyoti Bima Yojana, we have tried to explain this scheme in a simple language in detail.
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Information about insurance, definition of insurance, its characteristics and benefits, how many types it is, how life insurance premium is determined, what is Ulip, what is endowment, money back policy, term plan What is it, how are your agents and how to take insurance precautions read here easy in Hindi Read also about the Prime Minister Jyoti Jyoti Bima Yojna.
Many times we have a lot of confusion about which insurance and how to take it, here you will find answers to all the fears related to it and it will be easy to make decisions. Life is very priceless and Usha can not pay any value, even then we can strive for the future of our own and our family.
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