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New Delhi:
Term insurance plans are an excellent way to secure your family's financial future in the event of an untimely demise. They provide a fixed amount of money as a lump sum to your loved ones in the event of your death. This money can help your family meet their financial obligations and maintain their lifestyle, even if you're not around. However, there is one question that many people ask when it comes to term plans - Can I cash my term plan? The answer is no. Term insurance plans are designed to provide life coverage to the insured. In case the insured dies during the policy term, the nominee gets a death benefit, which is the sum assured of the policy. Unlike other life insurance plans, a term plan does not accumulate cash value over time. This means that you cannot withdraw money from the policy before its maturity date. The only way to get any benefit from a term plan is to file a claim in the event of the insured's death. Now that we have cleared that out, let's talk about what you should look for in a term insurance plan.
However, there is one question that many people ask when it comes to term plans - Can I cash my term plan? The answer is no. Term insurance plans are designed to provide life coverage to the insured. In case the insured dies during the policy term, the nominee gets a death benefit, which is the sum assured of the policy. Unlike other life insurance plans, a term plan does not accumulate cash value over time. This means that you cannot withdraw money from the policy before its maturity date. The only way to get any benefit from a term plan is to file a claim in the event of the insured's death. Now that we have cleared that out, let's talk about what you should look for in a term insurance plan.
The Amount of Cover:
The sum assured should be adequate to take care of your family's financial needs. It should be large enough to cover expenses like outstanding debts, mortgages, children's education, and other living expenses.
Tenure:
The longer the policy term, the higher the premium you pay. So it's better to opt for a shorter policy term if you want to save on premiums.
Riders:
You can add riders to your term plan to get additional coverage. Riders like accidental death benefits, critical illness cover, and waiver of premium can provide extra protection at a nominal cost.
Premium Payment Term:
Choose a premium payment term that suits your financial situation. It can be monthly, quarterly, half-yearly, or yearly. However, one term plan that you can consider for enjoying additional returns is the Canara HSBC Life Insurance iSelect Smart360 Term Plan. The plan offers the following benefits:
Life cover till 99 years of age:
It provides life coverage till 99 years of age, ensuring complete protection for you and your family.
Steady Income Benefit:
The plan provides a steady income benefit to the policyholder when they reach 60 years of age. This can help you maintain your lifestyle during your retirement years.
Child Care Benefit:
The plan also provides an additional sum to meet your child’s expenses till they reach the age of 21.
Return of Premium:
One of the unique features of this plan is the return of premium option. If you survive the policy term, you get back the entire premium paid during the policy term.
No Future Premiums in Case of Critical Illness:
In case you are diagnosed with a critical illness, all future premiums under the policy will be waived off. This ensures that your policy remains in force, and your family continues to be protected even if you are unable to pay premiums.
Conclusion:
In conclusion, a term insurance plan is an excellent investment to secure your family's financial future. It's important to choose a plan that suits your budget and provides adequate coverage. The Canara HSBC Life Insurance iSelect Smart360 Term Plan is an excellent option that provides comprehensive coverage, return of premium, and a range of other benefits. It's important to compare different plans before you buy one, and you can explore the product online for more information.
