Term Plan Benefits You Should Be Aware Of!

When it comes to life insurance, nothing is simpler than a term insurance plan. Their working is simple—if the policyholder dies during the tenure, the nominee gets a death benefit, if all goes well, nobody gets anything. This simple working has made these plans a hit amongst customers. Cost is affordable and one purchases these plans online as well. But the insurance market is flooded with players, each touting their plan as the best term insurance plan. To overcome this competition, a few players have innovated and offered various inbuilt benefits that accentuate the plan’s offering. Here are the ones you should know.

• Accidental Death Benefit: When a policyholder dies during the policy term, the nominee receives the death benefit sum (natural death). However, if the term plan had an in-built accidental death benefit, then the nominee would receive an extra sum along with the regular death benefit if the policyholder’s cause of death was an accident.

• Terminal Illness Benefit: If the policyholder is diagnosed with a terminal illness as mentioned in the policy document, he or she receives an assured percentage of the death benefit. Post which the total death benefit is reduced as per the percentage deducted for the terminal illness benefit.

• Waiver of Premium: This benefit becomes active if a certain action takes place. For instance, if the policyholder suffers permanent disability due to the accident, then the insurance company waives off all the future premiums in his term plan.

• Critical Illness benefit: If the policyholder is diagnosed with a critical illness mentioned in the policy form, then the sum assured is paid out a lump sum. During this process, the base plan continues without any obstruction.

These benefits are what accentuates a life insurance plans. There are a few of them on the market right now, search them online and compare them. And the best part? Most of these are online term insurance policies so buying them is a simple affair.