Term life
insurance is a type of insurance that is opted for a specific period or a fixed
term in years. The unique feature of term life insurance that distinguishes it
from other life Term insurance
Singapore plans is that
the term insurances are less expansive because it doesn't have any cash value.
This policy proves to be useful only when the insured dies within the term of
the policy.
Today, you
will find no shortage in term life insurance policies in the market as this
type of insurance is offered by almost all leading insurance companies. This
type of policy usually comes for ten years, 20 years, and 30 years. The
interesting feature of term plans is that most of the plans usually come with a
built-in feature to get converted into a permanent life insurance policy,
regardless of the insured's health condition.
How does Term Insurance Plans Work?
Term life insurance is considered to be the most traditional type of insurance today. So, to understand its working, you need to have a look at the following three situations.
· Buying of Policy – To avail the best Life Term Insurance Singapore, you are not required to invest tens of thousands of rupees every year. Various Term Insurance policies promise to offer a sum assured of Rs One crore against the lowest premium of around Rs 10 000 per annum.
· Keeping the Policy – Alike all other insurance schemes, the insured are required to pay the premium against the policy when the premium becomes due. Premiums can be paid either monthly, quarterly, or annually. You can also pay a lump sum amount as a premium at the time of signing the contract rather than paying monthly.
· Redeeming of Benefits – The term plans usually don't come with any maturity benefits. Such policies' prime aim is to offer life insurance coverage to the insured up to the termination or maturity of the policy. If the insured dies before the maturity, the policy's nominee can claim for the death benefit and get the sum assured as promised by the company in the contract.
Online Comparison of Term Insurance Plans
There are a variety of benefits that one can avail of by comparing the term plans online. There are many websites over the internet that will help you compare various term life insurance plans and choose the best-suited plan for your need. A comparison of the policies will help you access all the features and key benefits of each policy. You can make a wise decision after evaluating all the options available to you.
With the proper online comparison of term insurance policies, you can easily find the lowest premium policies and the insurer to offer you the highest sum assured for the lowest premiums.
