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Your Online Term Plan Would be Incomplete Without These Add-On Covers

If you fear a risk to your life due to an accident, maybe because of the nature of your job, like an individual working on a construction site or somebody who is required to travel more, then, you have an option to cover the associated life-loss, financial risk.

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Online term plans are an inexpensive way to ensure financial safety of your dependents. However, pure term plans may be incomplete, since they will only help in case of untimely demise of the insured. There are multiple other threats to life with similar consequences, talk about accidents, illnesses, disability etc.

These hazards may also lead to similar financial difficulties as an untimely death. Then why not safeguard against them along with your online term plan?

These reason are precisely why someone might find selling a life insurance policy to be more beneficial than holding on to it after they die. Mounting hospital and medical bills can quickly eat away at one’s estate and a loved one’s inheritance. Not to mention interest rate charges from financing and carrying that debt until you pass.

Also, a few features will be helpful for your family to avoid struggles in future. You can select these benefits in the beginning while buying the policy. These features are critical too for online term plan since they cannot be added later.

Given below are the critical features and covers you should seek while buying term plan online:

Regular Income Benefit

Do you know that you have an option to disburse a fixed monthly income for your family through your same online term plan? This is in addition to the lump sum benefit. By paying a little extra premium, you can ensure a regular income for your family. Meaning they don’t have to bother with investing the lumpsum money for regular household expenses.

In this case, a pre-committed sum of monthly income is paid to your family by the insurance company, so that the income flow in the household continues even in your absence.

You also have an option to increase the income disbursement if you buy a compounded income plan. The annual income grows here at the compounded rate of 10%, for example. Now, if you wish to opt for fixed income protection or increasing income protection, you need to pay a marginal increase in the annual premium of your basic term plan. A small amount adjustment can make life after-you convenient and easier with cash-in-hand. Nothing works better than monthly income in hand.

These hazards may also lead to similar financial difficulties as an untimely death. Then why not safeguard against them along with your online term plan?
Representational Imagw

Critical Illness Cover

A health calamity like cancer or heart ailment could make your family floater health insurance look small. Thus, a critical illness rider, which offers higher cover for a lower cost. Though you still need medical insurance, for normal hospitalisation and day care treatments, critical illness plan will cover the extraordinary cost of life threatening diseases.

After all, there are medical treatment expenses, and saving enough money to prepare for all is never possible from day one. You still need access to the best of financial resources to save your life and safeguard your financial interest.

By availing this rider option, you are safeguarding your health and wealth both. It gives you access to a pre-fixed amount of sum insured under a basic term plan, for your treatment against heart ailment, cancer or any other critical illness as specified in your policy contract. Now, this thought is not too far-fetched as we continue living in fear of life stress situations. So, to leave your biggest worry, of a medical emergency, an add-on to a term policy can be done with awareness and caution.

Personal Accident Cover

If you fear a risk to your life due to an accident, maybe because of the nature of your job, like an individual working on a construction site or somebody who is required to travel more, then, you have an option to cover the associated life-loss, financial risk.

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This additional cover entitles your family to an additional sum of money in case the death happens due to an accident. It is the perfect addition to suit your job risk and financial needs arising suddenly. Moreover, it maximises returns through the same term plan.

While some of these options may not seem necessary to you, it is imperative to understand the fact that all the risks covered under the rider options are meant to secure your income and family wealth. A basic term insurance plan may cover your biggest worry of your family losing access to your income. Therefore, the need for a critical illness cover.

Similarly, going by the basic nature of a term plan, death is in inevitable, and one can only go as much to provide a hale and hearty life to their loved ones. So, are you doing enough?

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Wolrd Bank Chief Asks India to Undertake Financial Reforms

It has made progress in terms of monitoring of assets, the bankruptcy process and deepening of the banking system

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India, Financial, Reforms
The Indian financial sector has made quite a bit of progress. Pixabay

India must undertake financial reforms in three key areas — sound regulations for non-banking financial companies (NBFCs), allow private sector banks in a big way in the banking sector and deepen capital market to aide growth — World Bank group President David Malpass said during a media interaction on Saturday.

Malpass, who is on a three-day visit to India, earlier met Prime Minister Narendra Modi, Finance Minister Nirmala Sitharaman and members of the Niti Aayog and discussed financial sector reforms with them as well.

“We (Malpass and Modi) discussed the ways in which the financial sector can move forward. The Indian financial sector has made quite a bit of progress. It has made progress in terms of monitoring of assets, the bankruptcy process and deepening of the banking system.

“I am looking forward to encouraging progress in three primary areas — to allow growth of the banking sector, including the private sector; allow and encourage deepening of capital market bonds, mortgages; and the third is regulations for NBFCs which have grown in importance in the Indian financial system, but entails some risks.

India, Financial, Reforms
Malpass, who is on a three-day visit to India, earlier met Prime Minister Narendra Modi, Finance Minister Nirmala Sitharaman and members of the Niti Aayog and discussed financial sector reforms with them as well. Pixabay

“Having sound regulations for NBFCs, which is vital to India’s overall growth, will help India’s financial sector. Prime Minister Modi has the goal of a $5 trillion economy. That’s a powerful vision that needs to be assisted by innovations in the financial sector,” Malpass said during the media interaction.

The NBFCs have caused credit squeeze in the financial sector. Default in IL&FS bonds sparked a liquidity squeeze that spread to other NBFCs. It led to credit squeeze, over-leveraging, excessive concentration and massive mismatch between assets and liabilities. The government has since been observing the sector quite closely.

Malpass also called for more reforms to support growth.

“My prescription is that openness to reforms and innovations, and improvements in the government structures will allow for faster growth. India has undertaken important reforms in the last few years,” he noted.

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Replying to a query as to whether demonetisation has caused lower growth in India, the World Bank chief said, “Economists made lots of forecasts… They were saying India has been affected by the global environment and has slowed from the higher past growth rates and it is very much related to the slowdown in global growth.”

Recently the World Bank sharply cut India’s growth forecast for the current fiscal to 6 per cent, down from the 7.5 per cent forecast it made in April.

Malpass said the main policy challenge for the country is to address the sources of softening private consumption and the structural factors behind weak investment.

The World Bank President said that stronger courts, modern land management and land permits and enforcement of contracts will benefit India.

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We (Malpass and Modi) discussed the ways in which the financial sector can move forward. Pixabay

He also said that the possibility of setting up fast track courts for dispute resolution should be considered.

To modernise land management, India could digitise land records, which will facilitate quick transactions, he said.

Malpass also said that global trade uncertainty, Britain’s plans of leaving the European Union and the low investment rate in the world were among the factors affecting growth.

“I think what is to be done is to have better growth programmes country by country,” he said.

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Malpass said the World Bank will continue with the $6 billion lending target for India. Ninety-seven projects are currently being executed with loan assistance from the World Bank in India.

“The World Bank right now has 97 projects in India with a commitment of $24 billion. We expect the programmes to continue,” he said.

Praising the recent corporate tax cut, Malpass said, “India has taken a good step with the recent cut in corporate tax rate which will add to its growth.”

The government recently cut the effective corporate tax rate from 35 per cent to 25 per cent and those not availing any other incentive will have an effective tax rate of 22 per cent. (IANS)