Term Insurance Accidental Coverage and Cashless Services

Thursday, August 24, 2017

Term Insurance Accidental Coverage and Cashless Services

The security and happiness of your family members would be your highest priority. However, life is unpredictable and you need to ensure their financial stability in case of your premature demise. This financial security may be achieved through life insurance coverage.

Traditional endowment and money back policies are expensive due to a higher premium. An excellent way to avail of higher coverage at an affordable premium is availing of a term insurance policy.

Term insurance plans are pure life cover policies that pay your beneficiaries the sum assured in case of your demise during the policy term. Here are three features of term insurance policies.

1.    Affordability

The premium on term insurance policies is lower than that on traditional insurance plans. This enables you to avail of higher coverage at an affordable premium.

2.    Flexibility 

You may either opt for a single premium plan or periodic premium plan as per your convenience. The premium may be paid monthly, quarterly, semi-annually, or annually. 

In addition to the aforementioned features, several insurers offer value-added features that make term plans more attractive. Here are two riders you may include with your plan.

1.    Accidental death benefit
As a breadwinner, you do not want to risk your family’s financial stability in case you meet with an accident. Treating your injuries may require a huge amount of money that may deplete your savings. Unfortunately, if you pass away your family members will have to deal with the emotional distress. You do not want them to further worry about their financial future. To prevent such a situation, including an accidental death benefit rider is useful. Your nominees will receive a lump sum benefit as per the policy terms in case of your accidental demise.

2.    Permanent disability benefit

If you meet with an accident and suffer permanent disability, you may be unable to continue working. A permanent disability rider offers installment-wise payments to help you overcome financial difficulties resulting from loss of income.

Members do not face any hassles in case the need to make a claim arises during the policy tenure.

Author: Dhwani S

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