|Objective||The policy aims to provide financial support to a family in case of uneventful death of the insured member.|
|What does it do?||This term insurance policy pays sum assured in the unfortunate event of death of the insured. The policy offers to cover till 60 years of age. Thus, if a 25-year old takes this policy, he/ she can get a cover for 35 years. However, one can also buy coverage for a lower age and term, as per need.
The policy will not lapse in case the policyholder fails to pay premium for any reason. It will continue with a reduced paid-up value, provided premiums for first 3 policy years were paid regularly. The reduced paid-up value is calculated using following formula:
(Number of premiums paid/ Total number of premiums payable) x Face amount
The plan offers two optional riders that can be added to basic policy to enhance coverage. However, the riders are available only for policies with regular premium payment mode.
|Pros||Riders are available for additional protection.
The policy offers a long reinstatement period of 3 years, unlike 2 in most plans.
Premiums paid towards this policy qualify for tax deduction under Section 80C.
|Cons||Riders can be taken only at the time of purchase and not during the policy term.|
|Suited for||Pure term plans are a definite buy for all and offer adequate coverage at low prices. The policy can be taken by those who prefer buying via traditional channels involving agents.|
|Our View||Critical Illness rider is useful and a must for those with a family history of any of the mentioned illnesses. However, if you are comfortable with online purchases, look for online policies as they have lower premium rates.|