What is a term insurance plan and how does it work?
Term insurance plans are a type of life insurance plans which provide coverage for specified period of time. Term insurance plans are specifically designed to secure your family in case of death or uncertainty of the policy holder. Plans provide agreed benefits to the nominee in case of death of the policy holder within the policy term. But if the policy holder does not die within the policy term and the policy gets maturity, then some plans return your paid premiums while some plans do not pay anything. Please read the terms and conditions of the policy document before entering into a contract.
What happens to term life insurance if you don't die?
On Maturity some plans return the premiums you paid while some plans do not pay anything. It all depends on the type of plan you have chosen.
Can you renew a term life insurance policy?
Not all terms plans are renewable. It all depends on the policy guidelines which the policy holder is having. Some plans are renewable for another term or so while some others are not renewable.
Additional benefits of Term life insurance:
In addition to protection against death, Term life insurance also provides several other benefits (to be purchased as riders) as well.
Some of the kinds of riders available with term insurance policy include:
- Waiver of Premium
- Accidental Death Benefit
- Critical Illness
- Return of Premium.
- Permanent And Partial Disability.
- Income Benefit