Many times you have heard an advertisement on Television that You can buy term Insurance from PolicyBazaar and it buying Term Insurance is cheaper as compared to buying it from direct company’s website or buying through an agent. The question arises in mind what is term insurance and why is it necessary for you to buy term insurance for yourself.
What is Term Insurance?
Term Insurance is the type of insurance that will help in fulfilling the financial needs of your family when you are not there. Term Insurance is the Basic Insurance which everyone should have. It is not any ULIP or Traditional plan. Term Insurance is launched for the purpose that if the earning member of the family dies due to any circumstances except suicide then to fulfill the financial needs of the family in the future the insurance company pays the lump sum amount to the family. This Amount is known as the sum assured amount. It is set at the time of Buying Insuarnce. Compensation of Term Insurance is given only after the Death of Policyholder. No maturity is also given on Term Insurance unless you have selected the option of Return of premium after maturity if nothing happens to the policy holder
Eligibility for Term Insurance.
Any Indian Citizen of Age Group 18-65 can buy this term insurance. Term Insurance should be 20 times the Annual Income of the Insured Person. i.e if the annual income of the earning member is Rs 5 lakh then he should have the term insurance of 1 crore rupees. Now after Covid many companies have put the condition of Minimum ITR i.e a person filing ITR is eligible for the term Insurance of 1 Crore.
Why Life Insurance Companies put the condition of ITR i.e if a person is filing ITR of 5 Lakh or more is eligible for Term Insurance of 1 crore rupees?
After Covid-19 when the death in India starts happening. Many online insurance companies started showing Term Life insurance advertisement and after watching these advertisements many new people are approaching insurance companies and suddenly applications of Term Life insurance have increased and most of these new people don’t have ITR and they all are applying for the term insurance of 50 Lakh, 1 Crore. So to sort them Most of the insurance companies have made ITR The Mandate Criteria i.e. Person Filing ITR is eligible for Term Insurance. The second Reason for Making ITR of 5 lakh is mandated because Term Insurance of 1 crore is the minimum term insurance a person should have and according to the basic law of term insurance is that a person should have the Term insurance of 20 times of Annual Income and 5 lakh annual income is suitable for 1 Crore Term insurance.
IRDAI directed Life Insurance Companies To Launch Saral Jeevan Bima for Low-income people i.e below 5 Lakh Rupees.
After the majority of Insurance Companies have Made ITR compulsory for Term Life Insurance. People Complains this to IRDAI and IRDAI has directed all insurance Companies to Launch SARAL JEEVAN BIMA. The Main Purpose of launching this Bima is that Low-income people can also secure the future of there family.
PhonePe also launches Term Insurance
After Seeing the ITR is mandated by the majority of Insurance companies. PhonePe sees the opportunity in this and PhonePe becomes the first mover by Launching the Term Life Insurance in association with ICICI Prudential Life. The name of The Term Insurance is Group Term Plus. Under This Term Insurance, Maximum Life Cover is up to 20 Lah Rupees and if we calculate then it is suitable for peopel earning upto 2 lakh Rupees per year. PhonePe Launches Term Insurance for it’s Users
Why Agent doesn’t Tell About Term Insurance?
Agent Doesn’t tell about Term Insurance because the Premium is very low if you purchase the Term Insurance between 20-30 and it will increase as your age grows up. If a person of age 25 years is a non-smoker, Non-drinker and he purchases the term insurance of 1 crore Rupees then the yearly premium is around Rs 8,629. and when age increases the Premium increases and peopel ignores this as there is no Maturity in this until you choose the option of premium return.
Why 1 Crore Term Insurance Plan is in demand these days?
In Recent days Many People ask about 1 Crore Term Insurance Plan and why this is happening. All this is happening due to the advertisements run by Policybazaar.com on television. During the Covid-19 Lockdown, Everyone is at home and watches television, and these insurance brokers and insurance companies took the benefit of this and show 1 Crore Term Insurance advertisement on television.
After showing the advertisement people started searching for these plans and now everyone wants 1 crore term insurance plan. When people start pitching to them about this plan they put the condition of Minimum ITR of 5 Lakh Rupees.
List of all Insurance Companies which give 1 Crore Term Insurance Plans.