 Broadly insurance can be classified in two categories: First - Life Insurance which matures in event of death of the insured/policyholder. On occurrence of such an event the insurance company pays a sum of money assured to the nominee/beneficiary (person nominated by the policyholder). Life Insurances are of two types: Traditional Plans - which contain Endowment Plan , Cash Back Plan, Term Plan , (Term Life Insurance) and Whole life policy. And Unit-linked Insurance Plans - are of 4 types - Endowment cum Ulips, Children Plan , Retirement Plan or Pension plan and investment/saving plans. Second - General insurance. All insurance policies other than life insurance policies come under general insurance segmentation. (Also known as non-life insurance policies). These policies include Home Insurance, Auto Insurance, Travel Insurance, Marine Insurance, Theft Insurance, Office insurance and Health insurance Health insurance is most acquired policy in general insurance segment. Health insurances are of 3 types - Comprehensive Plan - which include Mediclaim and Fixed benefits plan, Accidental Insurance and Critical Care plan . |
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| What is term plan ? Term Plan is a part of life insurance which provides coverage at a fixed rate of payments for a limited period of time i:e relevant tenure. It’s a pure death benefit plan, its primary aim is to provide coverage of financial responsibilities of the insured. |
Benefits of term plan
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Why buy a online life insurance plan ? Online insurance plans are promoted as cheaper than their offline versions. Not only being cheap but it also facilitates you with the simplicity and the quick service. Nowadays buying goods and services over the internet are more secure than ever before. Insurance policies are now widely available on internets rather than following an agent or dealing on phones consumer can consider their options and buy the appropriate plan for themselves. Internet has become more secure and safe in recent years giving consumers faith they can share their details online safely. Most popular and cheap among the online plans are Term Insurance plan to be purchased today. A man of 30 yrs can give 50 lacs cover to his family just paying 6000 annually for a tenure of 30yrs. |
| Process of Claiming the SA : As per the regulation 8 of the IRDA (Policy holder's Interest) Regulations, 2002, the insurer is required to settle a claim within 30 days of receipt of all documents including clarification sought by the insurer. However, the insurance company can set a practice of settling the claim even earlier. If the claim requires further investigation, the insurer has to complete its procedures within six months from receiving the written intimation of claim. . If the Company settles the claim beyond 6 months period, the interest is payable by the Company on the claim amount. The interest is payable only where the Claimant has submitted all the requirements. Further, rate and period of interest are decided as per IRDA guidelines. |
| Documents required for claim settlement: The nominee/claimant would require to submit original policy documents, death certificate by local authority, police FIR and investigation report (for accidental death),certificate and records from the treating doctor (for death due to critical illness) ,employer certificate(if the insurer was salaried)and the claim processing form. Based on the cause of death and policy term and conditions the insurance co’s may request for some additional documents. |
Facts about term plan:
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Term plan available in market:
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| Policy Term - Policy Term is a time period of the contract between Life Insured and the Insurer (Life Insurance Company/Provider), where the Life Insured have to pay a fix amount regularly for the chosen time period. |
