How Term Policies are coming with additional benefits?

The things have changed for better in the present world as the companies are introducing several other benefits in term policies.

Jan 29, 2015 05:01 IST India Infoline News Service

Every individual should take term policies. It should not be looked as an expense but an investment where a person put in money to get the protection for his family. The things have changed for better in the present world as the companies are introducing several other benefits in term policies. Some of the additional benefits offered are as under:
 
Different modes of payout
 
The companies are offering various modes of death benefits options. For example, ‘Edelweiss Tokio Life - MyLife+’ term policy offers three death benefits options. The first one is a lump-sum benefits option in which the entire assured amount is paid at one time. The second option is income benefit plan under which the sum assured is paid in parts. The family of the insured gets 1% of the assured amount every month for ten years. The staggered payout is considered as a better approach that enables the family to avail the benefits in the form of regular income. Depending on the personal needs, nominees can choose the payout options.
 
Return on premium
 
There are several policies available in the markets that cannot be termed as purely term policies. Apart from death benefits, they also offer survival benefits to the policyholder. Such policies are associated with high premiums and not preferred by online buyers.
 
Age limit
 
Earlier, it was not possible for the people above 50 years of age to get the term plans. In addition, the maximum age limit at policy expiration was 60 years. Now, the companies have introduced term plans with the permissible entry age of above 50 years to 80 years. They can buy the term policies but have to pay higher premiums to get the policy.
 
Higher Sum Assured
 
With the launch of new term plans, the average sum assured has touched the figure of Rs 70-75 lakh. The companies have introduced big-ticket term plans. However, most of them are keyman policies and sold only by reference.

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