We all want our loved ones to flourish and not be left in a lurch in our absence that is why we at initial years start with the financial planning. And this planning goes well, if we just buy in the right coverage at the right premium price. For this insurance companies looking into the interest of consumers at large has been providing several online term plans at high rebate. For instance, LIC is offering a huge 8% rebate on online purchase of term plans.
But the premium should not only be determining you term plan choice, neither you should be going with a plain-vanilla plain in the misconception that the comprehesive plan will be able to fulfill the financial needs of your dependents. This said, experts highly recommend choice of term plan in line with your family type i.e. after assessing all of the relevant factors such as if the nominees who will be granted a bail out as the sum assured value on your sudden demise during the policy term be able to make the best use of the provided funds.
So, after judging the various conditions, which you might be only be able to do best, we recommend you to go for different pay-out options instead of the otherwise lump-sum pay-out.
Thus besides the lump-sum payout option, you have other pay-outs to which you can decide on factoring the financial needs of your family.
Lump sum payout with fixed monthly or annual pay-out: In the case besides some pre-decided payment amount, nominee is entitled to receive a sum either in annual or monthly pay-outs to meet out the different liabilities which fall due over a time.
Lump sum payout with increasing monthly or annual payout: Here taking into account, the growing financial needs as well as inflation, nominee gets an increased amount over the time span. This is in addition to some sum which is tendered immediately after the death of teh policyholder.
Fixed or increasing monthly or annual payout:The beneficiary or nominee of the policy does not receives any lump sum amount against the term plan instead the full sum assured value is given as fixed or increasing monthly or annual over the pre-determined tenure.
So, with the best death payout option you can rest assured that the money cannot be eroded and will go well to serve the different financiial goals of your family.