Throughout our lives, we make many plans for our future, both small and sometimes, grand. One of the very first lessons which we are taught in life is managing our personal finance and staying prepared for any unforeseen events that would hamper our ambitious financial goals. One of the most convenient and essential investments we can make to safeguard our plans is to buy a term policy from a trusted life insurance provider.
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What is a Term Plan?
A term plan is essentially a life insurance policy in which a predetermined amount of coverage is given to the policyholder for a specific period called “term”. If the policyholder passes away during the term of the insurance policy, then the beneficiary appointed by the policyholder will receive the predetermined amount as a death benefit.
Unlike traditional life insurance policies, term insurance policyholders have far more economical premiums and higher flexibility in terms of features. Moreover, if you look for online term life insurance plans, insurance companies would offer you the best term life insurance with additional discounts to promote their products. But did you know, you are capable of enhancing features of a term plan one notch higher with the various adjustments it has to offer? If not, let us find out more below.
What are Term Plan Adjustments?
The changes which a policyholder can make to his or her term life insurance plan as per his requirements is known as term plan adjustments. Adjustments to term life insurance can be made based on the coverage, the premium payments and the tenure of the term plan.
We must keep in mind that all insurance companies are not the same, and hence not all of them would offer the same type of term plan adjustments. It is advisable that before purchasing a term plan, the policyholder must review and compare various plans and offers provided by different insurance companies.
How do Term Plan Adjustments Work?
A term insurance plan offers cover to the policyholder in case of any unfortunate event in his/her life. As a policyholder, you must pay premiums towards the insurance company to ensure your beneficiary receives the death benefit. However, with term plan adjustments, you have the power to adjust the features of your term insurance policy based on your changing requirements. Let us have a look at some of the instances of Term Plan Adjustments below:
1. Choice of Premium Payment
You have the freedom to choose the mode of payment for your premiums. You can either select the single payment option where you pay the entire premium amount at once, or you can pay your premium regularly on a monthly or annual basis.
2. Insurance Coverage Options
You can avail of term plan adjustments by enhancing or increasing your overall term insurance coverage. You can decide to choose between either increasing or decreasing insurance coverage. With increasing insurance coverage, the coverage amount would rise throughout the term of the policy, sometimes also with your premium rates. Similarly, the coverage amount would decrease in decreasing insurance coverage.
3. Enhance Your Coverage with Optional Riders
You can enhance your coverage with various riders such as
- Accidental Death Benefit Rider
- Accidental Disability Benefit Rider
- Critical Illness Benefit Rider
- Waiver of Premium Rider and many more
4. Extend Duration of Your Policy
You can extend the tenure of your term life insurance coverage over a specific year or over your entire lifetime.
5. Select the Type of Death Benefit
You can also choose the death benefit type you would like your appointed beneficiary to have: lump sum amount, monthly payouts or both.
6. Include Your Spouse in the Policy
To provide additional benefits to your family, some term insurance plans also allow you to include your spouse in the plan, as an insured, at discounted rates.
Conclusion
Term Plan Adjustments can be an effective way to mould your plan and achieve the exact type of features and coverage you need. In today’s world, where almost everything can be customised, the ability to buy a term plan and convert it into the best affordable life insurance that is suitable for you is indeed a valuable investment.
