Insurance is an inevitable necessity that guarantees financial stability and freedom from worry in case of the client’s death. It can be a simple ₹50 lakh term insurance plan that provides additional life insurance coverage for the family’s financial safety.
Here are some tips to get the most out of such a plan.
Term insurance has long been the most popular type of life insurance. Its main advantage is its ease of understanding and low cost. Traditional term insurance is a policy in which the policyholder pays regular premiums for a predetermined period of time.
In the event of their death during that time, the beneficiaries will receive the sum assured. On the other hand, if the policyholder survives the policy term, there is no payout, which can make some people feel like they have wasted money.
In order to deal with this issue, the insurers have launched a new option called Term Insurance with Return of Premium (TROP). The increasing number of insurance companies that offer this option is a clear indication of its rising popularity.