What is Non-Linked Non-Participating Term Insurance Plan

Non-Linked Non-Participating Term Insurance Plan

If you know about term plans, you may have heard about the non-linked and non-participating term insurance policies offered by insurance providers. But do you exactly know what they are? Let’s find out!

A term plan is the best way to secure the life of your loved ones with comprehensive protection at a reasonable premium price.  There are numerous insurance term plans offered by numerous insurance companies that can be bought by people to cover their family’s needs and liabilities at a time when the head of earning member is not there. One such term insurance plan is the non-linked and non-participating term plan. Do you know what these plans mean and how do they cater to your needs? Let’s find out by starting with what is linked and non linked insurance.

Non-Participating Term Insurance Plan

The term plans that are known as non-participating life insurance plans are the ones where the policyholder doesn’t get any added bonus or benefit declared by the insurer as dividend at different time periods of the policy tenure. This plan is also known as a non-par product insurance plan. So, in this case the insured has no share or participation in the profits earned by the insurer. Also, if the insured outlived the plan, they would not get any guaranteed returns at maturity.

Rather, in this case, the insured will simply pay their premiums and the nominee of the insured would receive death benefit (a prefixed amount) if the insured dies during the term of the policy.

Non-Linked Insurance Plan

As the name suggests, the non-linked term life insurance plans are those that are not related or have no link to the market. Here, whatever be the performance of the insurer in the market, it doesn’t affect the performance of your asset  in the form of the insurance policy. Here again, you would pay a particular amount of premium as required by the term of the policy. And despite whatever be the market condition or performance of the insurance plan, your family or the nominee of the plan would get the sum assured in case of your demise during the tenure of the policy.

Read More: What Happens if the nominee of a Term Insurance Plan Dies?

Non-Linked and Non-Participating Term Insurance – Features

1. They are not dependent on the market conditions

The best thing about non-linked, non-participating life insurance plans is that they are not affected by the market condition or the secondary market situations. These are pure and simple life covers that allow the nominee of the insured guaranteed support in case of demise of the insured, irrespective of the market conditions. Thus, this cover allow the family of the insured to have financial stability in the absence of the insured or the head earning member of the family.

2.They are low risk plans with guaranteed returns

These plans are low risk because they do not depend on the performance of the market conditions. They also do not allows the insured any share of the profit of the insurer or any bonus etc. earned by the insurance company.

3.These plans do not accumulate bonuses

Since these non-linked and non-participating term plans do not depend on the performance of the insurer, they do not allow the insured to earn any bonus or dividend on the plans.

4.These plans allow substantial coverage to the nominee of the insured at a reasonable rate

Another best thing about the non-linked and non-participating plans is that they allow the insured to get maximum coverage to their family at a nominal price.

To Conclude

There are advantages and limitations of almost every term plan be it linked and non linked life insurance. The non-linked and non-participating plans also have their share of limitations. You must check all the pros and cons of different plans before buying the best option as per your requirement and needs. You can even check the difference between linked and non linked insurance plans to understand which one would suit your needs better. There are many reputed insurance companies offering non-linked and non-participating insurance plans at substantial rates. You just need to search for the best one. Buying the best plan would suit your needs in the best possible ways.

Found this post informational? Browse PayBima Blogs to read interesting posts related to Health Insurance, Car Insurance, Bike Insurance, Term Life Insurance and Investment section. You can visit PayBima to Buy Insurance Online.

 

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Know Everything About Tele Medical Checkup for Term Insurance

Tele Medical Checkup for Term Insurance

The pandemic has changed the very basic way we used to operate in our day-to-day lives. Remote work has become the new normal and social distancing is way more preferable over social gatherings. Keeping in tune with the trend, insurance companies too are modifying their rules to suit the changing trend. Telemedical checkups are one such step in this direction.

The pandemic effect has been felt in every part of our lives. From the way we carry out our daily lives to the way businesses operate, everything seems to have undergone a change, for the better, of course. Staying in touch with the new “social distancing” way of life, the insurance industry too seems to be fast picking pace with its tele medical checkup facility for customers. Here we talk about tele medical for term insurance and how it can be a helpful tool in the new changing times.

Tele Medical Meaning

As the name suggests, tele means via telephone. Hence, a tele medical checkup refers to a medical examination with a doctor via a phone call. This substitutes the need for a physical visit to the doctor’s office for a checkup. The person can get the same examination done over a telephonic consultation with the doctor.

Why Do We Need Medical Checkups for Term Insurance?

Now the question arises, why is there a need for a medical examination in the first place when applying for a term insurance plan? Most insurance companies require their prospective customers to get a thorough medical checkup done before purchasing a term insurance policy.

This is to determine the health status of the person buying the policy. A person with no medical history or health problems is likely to receive the benefit of high coverage and low premium owing to the lower risk involved. Besides this, a medical checkup helps determine any pre-existing health conditions for the patient before he/she decides to purchase term life insurance.

What Happens During a Medical Checkup?

The medical test required by the insurance company essentially covers a few basic tests to ensure that the person is physically fit and healthy at the time of purchasing an insurance plan. Some of these tests include measurement of height and weight, cholesterol test, urine test, differential count, HIV I and II tests, fasting plasma glucose test, and complete blood count (CBC) test.

How do Tele Medicals in Insurance Work?

As mentioned earlier, a telemedical checkup refers to a consultation with the doctor over telephone instead of physically visiting their clinic. During this teleconsultation, the person undergoing the medical examination, or the life assured in the case of term insurance, communicates all vital details about their health to the doctor over a phone call.

The person is required to disclose complete information to the doctor with regard to any health conditions that they currently have or had in the past. Besides, the doctor may also inquire about the person’s family medical history to understand how likely the person is to have the same medical condition.

All these details are discussed over telephone at a time pre-determined between the doctor and the prospective policyholder, as per both of their convenience. Based on the details gathered by the doctor and submitted to the insurance company, the latter decides whether or not to issue the term insurance policy to the prospect.

Also note that in case any of these details turn out to be false or misleading, the insurer has every right to reject the insurance application for the applicant. This is regardless of whether or not the medical examination was done physically or via a telemedical consultation.

Tele Medical Checkup Helpful for NRIs

With telemedical examinations being conducted for term insurance plans, NRIs can now easily opt for a term insurance plan in India without having to actually visit the country for a physical medical checkup. This can now simply be done over a telephonic or video consultation with a doctor in India sitting in any part of the world.

Along with a telemedical checkup, NRIs can also easily opt for a term insurance plan online. They can choose the one that best suits their medical needs and complete all the necessary formalities online. This way NRIs can continue to enjoy the benefits of an affordable term insurance plan in India from any part of the world.

Read More: What is Solvency Ratio in Term Life Insurance

Why Do You Need Term Insurance?

We discussed above the facility of a telemedical checkup for term insurance plans that has been made possible during the pandemic times. But why do we need term insurance in the first place?

Buying term insurance is one of the wisest decisions you can make in your life. It is a guarantee that your loved ones will be protected in your absence, in the event of your death. A term insurance policy offers financial protection to your family, ensuring that all of their life goals and activities continue even after you’re gone.

It is always a good idea to buy term insurance when you’re younger in order to enjoy benefits like higher coverage and lower premium rates. PayBima offers term insurance plans to financially secure your family and loved ones in your absence. You can choose the one that best suits your requirement and guarantee a life of financial security and comfort for your family.

To Conclude

The COVID-19 pandemic taught us a lot of valuable life lessons. Securing ourselves and being prepared for an uncertain future was definitely one of them. This is why it makes sense to buy term life insurance at the right time, preparing your family for life’s uncertainties in your absence.

Medical checkup is a requirement by most insurance companies before allowing an applicant to buy a term insurance plan. With social distancing as the new preferable norm, telemedical checkups are soon picking up trend, allowing convenience to people for getting medical examination done from the comfort of their homes.

Found this post informational? Browse PayBima Blogs to read interesting posts related to Health Insurance, Car Insurance, Bike Insurance, Term Life Insurance and Investment section. You can visit PayBima to Buy Insurance Online.

 

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What is the Deferment Period Under a Child Plan?

Deferment Period Under a Child Plan

A deferment period is the time period from the start of a child plan till the child becomes the owner of the policy. Let’s learn more about the deferment period in insurance in this post.

As parents, if you want to secure the future of your child by saving enough capital to fulfill the dreams and career goals of your children, nothing can suit more than a child insurance plan. Thus, a child plan is the most recommended savings policy that can be used by parents to accumulate wealth to allow their kids to make their future dreams come true.

Under child plans, the owner of the policy is the one who buys the plan and who pays the premium, which, in most cases, is done by parents. Thus, you – the parent – becomes the owner of the policy while the child receives protection under the plan.  Later, the child is made the owner of the policy when he/she reaches a particular age.  The time period from the purchase of the child plan till the child becomes the owner of the plan is called the deferment period.

Let us discuss the meaning of deferment period and the role it plays in child plans.

Deferment Period in Children’s Policies

So, as discussed above, deferment period is the time duration from buying a child plan till the time when your child is made the owner of the policy. Further, the time duration from when your child is made the owner of the policy till when the policy matures or till the maturity date of the policy is termed as the deferment period stage two under child plans.

Ways in Which Deferment Period under Child Plans Function

There are 2 stages of deferment period under which a child insurance plan works, the first is known as the deferment period, while the second one is the insurance period. As already discussed the deferment period is the duration from the start of the child plan till the child is made the owner of the plan. On the other hand, the insurance period is the time duration from the child becoming the policy owner till the maturity date of the policy. So, when the child turns 18 years of age and becomes the owner of the policy, the risk coverage of the plan starts.

Now there are certain scenarios in which you would like to know what exactly will happen to your child investment plans.

What if You Want to Surrender the Child Plan?

A child saving plan allows the policyholder to surrender the plan after three years. In this case, you would get the definite surrender value that includes 90% of premiums that were paid (excluding the ones paid in the first year) after the deferred date. In case the deferment period is less than 10 years, you also get extra 30% of premium money that you have paid.

If the deferment period is 10 year or more, you can receive cash 90% and 30% of the paid premiums given after the deferment period is completed.

Read More: How to Choose an Insurance Plan for Your Child?

Top 3 Benefits of Buying a Child Plan 

There are numerous benefits of investing in a best child plan. Here are some such benefits mentioned below:

1. Benefit received at Maturity  – The child plan allows the insured or the nominee to accumulate a lump sum as maturity benefit that can be used for various requirements of the child.  Along with sum assured, the maturity benefit also includes bonuses that are announced at the time of maturity.
2. Benefits received due to Death of the policyholder – Child insurance plans also offer death benefits under the policy. In this case, if the insured or the child who owns the policy dies at the end of the deferment period, you get the death benefit. However, if the child dies before the end of the deferment period, the policyholder can receive the entire premium paid till the time of the child’s death.
3. Tax Benefits under child plans – As per section 80C of Income tax, the premiums paid for child insurance policy are entirely exempted from tax.  In fact, the maturity amount received is also exempted from income tax as per section 10D.

To  Conclude 

If you want to secure the future of your child, procuring a child insurance plan is definitely the best idea. But, it is important to keep in mind several things while buying a child insurance policy including deferment period meaning in insurance that plays a critical role in the benefits received at maturity and in case of death. This period is also taken into consideration in case the policyholder wants to surrender the child insurance policy.

Found this post informational? Browse PayBima Blogs to read interesting posts related to Health Insurance, Car Insurance, Bike Insurance, Term Life Insurance and Investment section. You can visit PayBima to Buy Insurance Online.

 

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