Five Things to Know Before Buying SBI Term Insurance

Insurance has gained significant attention in the past decade and people of all age groups these days prefer to have an insurance plan. This is because of insurance play a vital role in providing financial security to the insured and his/her family.

However, it is necessary that you select the right insurance. There are various best life insurance plans available in the online insurance market and life insurance and medical insurance policies are the most preferred ones.

In addition to this, if you are the only working person of your family and you want to protect your family against any financial issues in your absence and want better protection than other insurance plans, then term plan should be your choice. Out of many term insurance providers, SBI term insurance is one of the best providers.

What is Term Insurance?

Term insurance is among the new concepts in the insurance market. Under this plan, an insured is covered in the insurance plan for a specific period of time. If the policyholder dies within the term of the policy, then his/her nominee gets sum assured. However, the plan does not offer any maturity benefits once the policy term gets over.

Things to Know Before Buying SBI Term Insurance

Today we are going to discuss the top five things that every term plan prospect must know before purchasing SBI term insurance plan:

Affordable Premiums:

Knowing the coverage of an SBI term insurance may give a perceptive of high premiums. However, the term plans of SBI are available in really affordable rates than other plans of the same category in the market. However, the premium of a term insurance plan depends on various factors like the age of the policyholder, his/her medical condition, habits, etc. so you may get an SBI term insurance in as low as Rs.500 per month.

Different Term Plan Options:

SBI Life Insurance Company provides an extensive range of options, wherein you can select from a monthly income plan to a term plan with critical illness cover.

Get Covered for Long Term:

A common myth among people related to term insurance is that the maximum tenure for which these plans are available is 25 years. However, it is not true because there are term insurance plans with extended term duration available. Experts suggest taking a term insurance plan for a longer period of time because the premiums that you pay gets locked and prevents from getting affected by the conditions of the market.

Flexible Premium Payment Modes:

The premium of the term plan is fixed for the duration of the policy. However, the SBI term insurance plans provide flexibility of premium payment such as you can pay the premium annually, semi-annually, quarterly, or monthly. Before selecting a premium payment mode always keep in mind the amount that you have to pay is feasible for you to pay monthly, yearly, semi-yearly, or quarterly.

If you are comfortable to pay the monthly premium, then select the same or if the yearly premium is easy for you to give, then opt for the same. Even though term plans provide flexibility to pay premiums, but it is your responsibility to decide which type of premium payment mode you want.

Survival Benefit:

A pure term insurance plan does not give you any survival benefit. This means, if you survive the term of the policy, you will not get anything like the return of premium. However, with various options, SBI Life Insurance Company has some term plans that give you survival or maturity benefit. So, if you want the same, you can select an SBI term insurance plan accordingly.

Also Read: Should I Invest in SBI Life Shubh Nivesh Plan?

Conclusion

With these above-mentioned things, SBI term insurance plans also provide rider benefits. By adding a rider in your basic plan you can improve its coverage and can easily make it better. The tax benefit is another advantage that you get by purchasing a term insurance plan. Apart from these, the term plans of SBI are also available online and you can get one in just a few clicks at the comfort of your home. So, what are you waiting for? Just purchase a term insurance plan of SBI and live a tension-free life.

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About FinanceGAB

Ajeet Sharma is a financial blogger and I am blogging since 2017. Financegab is a personal blog dedicated to personal finance. The main aim of this blog to help people to make well-informed financial decisions.
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