Term insurance is a type of policy. Provides coverage for terms of years, if some accident happens to the policyholder, monetary benefits are given to his family members and nominee, if someone has taken a term insurance plan of one crore and dies So his family will get one crore rupees.
In terms of insurance, you have to pay some amount every month, it is very less and for this, you do not have to complete any kind of time period. How can you take it and what are its benefits, which papers do you need and will also tell you about its advantages and disadvantages, stay connected with us to get all the information.
What Is Term Life Insurance
First of all, we will tell you what is term insurance, term insurance is a life cover for a defined period of time and in this only you get the death benefit, inside this, you are not given any kind of maturity benefit, and you do not get it also.
Understood from the example that your age is 20 years and you have bought insurance worth Rs 1 crore for your 15 years, then for this, you will have to pay a premium of around Rs 7500 to the company every year if death occurs during this policy.
So your family will get one crore but if the policyholder does not die then no money will be given the younger you are the less you will have to pay the premium and also if you have the habit of smoking or If there is any kind of disease then you will have to pay more premium.
Benefits Of Term Life Insurance
We should take term insurance because it covers all your loans and all responsibilities if the policyholder dies, then whatever loan and debt are on that policyholder can be repaid through this policy in term insurance You can also cover major diseases and disability and accidental death and this is the cheapest form of life insurance.
It has to pay the lowest premium and the maximum money is given to the policyholder’s family or nominee in this, you get tax benefit Term insurance is also available as a helper in repaying the loan and debt of the policyholder.
If a policyholder dies, then his family gets a lot of money so that they can lead a good life, that is why today’s All people should take term insurance in time so that after their departure their family does not face any kind of financial problem.
Eligibility Criteria Of Term Insurance
First of all, we will tell you what is the eligibility criteria to buy term life insurance, then every company has its own different criteria, your age should be at least 18 years and the maximum age should be 60 to 65 years.
Should mean to say that if your age is between 18 to 65 years, then you can take a term life insurance plan, the higher the age you take a term life insurance plan, the higher the premium you will have to pay when you take the term life insurance plan.
If you take an insurance plan, then the company also does your health checkup because it wants to know your health, how is your help and accordingly your premium will be decided.
Document Required For Term Insurance
Now we will tell you what documents you will need. To take a term insurance plan, first of all, friends, you should have two main documents, they will require a PAN card, in which your date of birth should be clear and you should have a photo identity card.
A passport voter id aadhar card and driving license, any one or two of these documents will be required and you may need either an electricity bill telephone bill, or ration card for address proof and you will need your Proof of income also has to be given if you do the job then you will need salary slip.
If you do any type of business then you will need ITR and along with these things, you will also need a passport-size photo. Documents you will need to take term life insurance.
How Much Term Insurance Should You Take
How much term insurance should you take? The insurance company provides you term insurance up to 20 times your annual income, if your annual income is 300000, then the term insurance company provides you up to 60 lakhs, but the more term you more you take insurance.
The more premium you will have to pay, it depends on you whether you will take a full-term insurance plan of your income or less, now the more term insurance plan you take, you will have to pay so much premium, otherwise, you will have to pay at least 10 times must be taken but if you take it more then you will have to pay more premium.