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Buy Regular Premium Term Insurance Plan in India
If you are looking to protect your family’s financial future, understanding a regular term insurance plan is essential. It is a type of life insurance that provides life coverage along with certain additional benefits at an affordable price. It ensures financial security for your loved ones in case of unforeseen circumstances during the policy term.
The following section explores all aspects of term insurance, its benefits, features, mistakes, etc.
Table of Contents
Who Should Consider Regular Premium Term Insurance?
The following types of people should consider the regular premium term:
Professional Earners
People who have a steady job, earn a decent amount of money at regular intervals, and can afford the premiums should consider buying regular premium term insurance plans.
Tax Savers
People who pay a lot of tax annually can opt for regular premium terms to receive tax deductions.
Retirement Planning
People who want to cover their complete age till retirement should consider buying the regular premium term plans.
Parents
Parents can use term insurance to secure their children’s future and ensure they have the financial resources for education and other needs.
Homeowners with Loans
A term insurance plan ensures your family won’t have to bear the burden of home loans or other liabilities if something happens to you.
Business Owners
Entrepreneurs can use term insurance to ensure business continuity and repay debts in case of their untimely demise.
Features and Benefits of Regular Premium Term
The following section lists certain benefits and features of a regular premium term plan:
Simplicity
The terms and conditions of a regular term plan are quite easy to understand. No complex clauses are included; you mainly pay a premium against your life coverage.
Add-on Riders
Regular term plans come with add-on riders that help policyholders get maximum benefits from a term insurance policy. The riders are available at a very nominal price.
Affordable Premiums
Compared to other types of life insurance, term insurance plans offer premiums that are quite affordable for common people. The earlier the policy is bought, the lower the premium.
Flexible Premium Payment Modes
You can choose from various payment frequencies: monthly, quarterly, half-yearly, or annually. This allows you to manage your finances better.
High Sum Assured
These plans provide a significant sum assured at a relatively low cost, ensuring your family is financially protected even in your absence.
Policy Term Customization
You can select a policy term that aligns with your financial goals, such as covering your family until your children become financially independent.
Tax Benefits
You can avail yourself of the various tax deduction benefits under Section 80(C) and 80(D) when you opt for regular-term premium plans.
Return of Premium
If the policyholder opts for term insurance with return of premium option, he will receive a maturity benefit. However, the premiums will be a bit higher in that case.
What are the Types of Term Insurance Premiums?
There are mainly 6 types of term insurance premiums, including the regular premium term insurance. The types of term insurance premiums are discussed in the following table:
Things to Consider While Choosing a Regular Paying Term Insurance Plan
The following things should be kept in mind while choosing a regular paying term insurance plan:
Assess Your Needs
Before jumping on to buy a term insurance plan, analyse its core purpose. The main purpose of term insurance is to have financial security. So, you only choose to buy a regular-paying term insurance plan if you have dependants or anticipate it in the coming future.
Choose the Right Coverage
When you choose a term insurance plan, make sure the amount you choose provides adequate coverage for your family. Consider every liability, loan, and expense you currently have and decide on the right sum.
Commit to Regular Payments
The premiums need to be paid for a long time, and once you opt for term insurance, you need to keep in mind that it is a commitment for a long duration. Missing even a single payment of a premium will result in the lapse of your policy.
Select a Payment Frequency
Here, you need to choose the frequency at which you want to pay your premiums. You can pay the premiums yearly, half-yearly, quarterly or monthly. Set up an auto-debit to ensure premium payment is on time.
Consult a Financial Advisor
Buying term insurance is to make sure that your family does not face any kind of financial problem in the event of your untimely death. Hence, getting in touch with a credible financial advisor helps you to make the best choice according to your income.
Conduct Thorough Research
You must conduct detailed research and compare it with every known insurance company so as to find the best deal for you. Compare various aspects such as benefits, drawbacks, etc. and make an informed decision.
Determine the Policy Term
When deciding the duration of the policy, consider your present expenses, income and savings. Then, anticipate the age by which you will complete all your financial obligations, and till that age, you will need your term insurance.
Common Mistakes to Avoid While Buying Regular Term Plan
Ignoring the Terms and Conditions
You must read every detail related to your regular term plan thoroughly to get an idea of what you are signing up for. Go through every line and every word, get your doubts clarified by the company's employees, and then make your decision.Choosing Excessive or No Riders
Buying an excessive number of riders along with your regular term plan may result in a very high premium value, which may look unreasonable in the future. Hence, assess your condition and buy riders to get the maximum benefit out of your term plan.Improper Research
Conducting thorough research before buying a regular term plan will help you lock in the right sum and an affordable premium. Compare the plans offered by various other insurance companies and then choose one.Choosing Insufficient Period
Cover your maximum age to extract the most benefit from a term insurance plan. Even though shorter time periods have lower premiums, they get increased when you renew them down the line.Determining Insufficient Sum
The main purpose of a term insurance plan is to provide financial coverage to your family in case of your death based on your present income and lifestyle. Hence, if you spend less money, your family may find it difficult to maintain their lives after you.FAQs about the Regular Premium Term Plan
What is the regular premium term insurance?
What is the difference between a single premium and a regular premium?
Why is regular pay better for term life insurance premiums?
Does the premium amount remain the same throughout a regular premium term insurance plan?
What types of death are covered under a regular premium term insurance plan?
What happens if I no longer require the cover after purchasing a regular premium term insurance plan?
What is the difference between regular premium and limited premium term insurance?
What are single premium and regular premium term insurance?
Can you switch between a limited premium and regular premium term insurance?
Other Important Articles Related to Term Insurance
Disclaimer
- This is an informative article provided on 'as is' basis for awareness purpose only and not intended as a professional advice. The content of the article is derived from various open sources across the Internet. Digit Life Insurance is not promoting or recommending any aspect in the article or its correctness. Please verify the information and your requirement before taking any decisions.
- All the figures reflected in the article are for illustrative purposes. The premium for Coverage that one buys depends on various factors including customer requirements, eligibility, age, demography, insurance provider, product, coverage amount, term and other factors
- Tax Benefits, if applicable depend on the Tax Regime opted by the individual and the applicable tax provision. Please consult your Tax consultant before making any decision.
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