Hidden Facts Of Term Life Insurance
We all wish our family happiness. We are always trying to ensure that our family does not face any kind of trouble. But imagine the situation when you are the only earner in your family and you die due to some reason, then your family may face financial crisis in this situation. In this situation, a term insurance plan can be helpful for you. Under the term plan, the nominee is given a lump sum upon the death of the insured during the insurance period.
This will help your family to meet its liabilities, daily expenses, children’s education and other tasks, which will bring security and financial stability. But usually many information related to term plans (best life insurance companies) are hidden from customers. It is very important to know these hidden information before purchasing the plan. So through this article, we are going to tell you some hidden facts of term insurance.
Some hidden facts about term insurance
Free-Look Period – Most customers are not aware of the free look period. Insurance companies (best life insurance companies) also try to hide it. Free look period is the period during which the customer can return it even if he does not like the policy. This period is usually up to 15 days after purchasing the policy.
Riders – Term insurance policies have several conditions. According to them, in case of death due to some serious illness or any other condition, the nominee does not get death benefit. For this, the insured has to pay riders by paying some extra premium.
Maturity Benefit – The nominee gets benefits only when the insured person dies during the term of the policy. If the person does not die during the term of the policy, a lump sum is not received. If you buy a term plan (best life insurance) with maturity benefit, in this case the amount of your premium is refunded.
Cover on death due to certain circumstances
Before buying a term insurance policy, people think that the death benefit is given in case of death in any way under the policy, but this is wrong. The companies do not provide benefits in case of death in the following situation.
• Natural calamity – If the insured dies due to natural calamities like earthquake, tsunami, etc., the nominee is not given death benefit.
• On the hand of the person named in the death – If the nominee’s death comes under suspicion, it is subjected to a thorough investigation by the insurance company and if the nominee is found responsible for the death of the insured, the death benefit is not awarded.
• Suicide – If the insured commits suicide for the benefit of the nominee or for any other reason, the death benefit is not awarded. But the premium amount is refunded to the nominee if he commits suicide after one year of purchasing the policy.
• Smokers or drinkers – The policy is given to the smokers or drinkers at a higher premium and the company gets the death benefit when it becomes known. But in the death due to any other form of intoxication, the nominee does not get death benefit.
Exceptions and Conditions
Term insurance companies usually try to hide some exceptions and conditions and do not mention them. But you should understand those exceptions and conditions well when purchasing a policy. For this, you should read the policy thoroughly. You can also take help of a trusted expert.
Death benefit in form of monthly income
If you do not want the nominee to receive the death benefit as a lump sum, then you have the option to choose it as monthly income when purchasing the policy. With the benefit of monthly income, your family will be able to use it appropriately. Because it can be difficult for family members to handle lump sum, use it properly and invest.
Claim Settlement Ratio
If a fake company is selling its policy to you, it will never talk to you about the claim settlement ratio. Because the claim settlement ratio reflects the number of claims settled by the company in a year, it is better to buy a plan (best life insurance plan) from a company with a higher claim settlement ratio.
Solvency Ratio i.e. Tax Donation Capacity. This ratio reflects the insurance company’s ability to meet its debt and other financial commitments. The solvency ratio of the company from which you are taking the policy should be high. This is expected to result in early settlement of the claim.
Therefore, while purchasing a term policy, we must get information about these hidden facts. Otherwise, even by taking a policy, we can be deprived of its benefits.