Term plans are cheaper compared with other plans as there is no investment component
FEATURES: This is a term plan, or a pure protection plan, designed especially for online customers.
Under this plan, there are no maturity benefits at the end of the tenure and only life risk is covered. In case of unfortunate death of policy holder, sum assured is paid to nominee and the policy terminates. In case, the policyholder survives the policy term, the company will not pay anything to the policyholder.
ENTRY AGE: You need to be at least 18 years old and less than 60 years to buy this policy. This policy will expire or terminate when the policyholder attains 70 years.
PLAN OPTIONS: There are two different options available under the plan and choice of buying a rider or attachment. Under level cover plan, sum assured remains same throughout the policy term, while under increasing cover plan, sum assured will go up by 10 per cent every fifth policy year without increasing the premium.
POLICY TERM: Minimum tenure under the level cover plan is five years and minimum policy tenure under increasing cover plan is 10 years.
COVER: Minimum sum assured or life cover is Rs 20 lakh and there is no upper limit on choosing sum assured. The company decides maximum life coverage based of reasons such as your income, risk perception and so on.
DISCOUNTS: Non smokers and women customers will be offered discounts and the premium charged will be charged lesser.
PREMIUM: To a 30-year-old male and a smoker, for a Rs 50 lakh life cover, the company will charge an annual premium of Rs 11,190, and to a non smoker, the company will charge Rs 6,425. For the same life cover, a 30-year-old female and a smoker will have to pay a premium of Rs 8,540, and a non smoker will pay Rs 5,055 as premium.
RIDER: You can buy an accidental death rider on paying extra premium. In case, the policyholder dies in an accident, the company will pay sum assured plus accidental death sum assured. The accidental death benefit will be equal to the basic sum assured or Rs 50 lakh, whichever is lower.
Buying a term plan is a good idea as it covers you and your family against unforeseen risks in future. Term plans are cheaper compared with other plans as there is no investment component in the plan. Also, as this plan is sold exclusively online, premium is cheaper
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