This article delves deep into the realm of holding multiple term insurance policies, highlighting the benefits and answering your pressing queries regarding this facet of financial planning.
Term insurance is a type of life insurance that provides coverage for a specific period, usually between 5 to 35 years. It is a popular choice among individuals who want to ensure that their loved ones are financially secure in the event of their unexpected death. To purchase this type of insurance, individuals are mostly required to undergo certain medical tests.
With that said, these tests are not necessary for some term insurance plans. This type of term insurance is often preferred by individuals who want a quick and easy way to secure life insurance without having to go through the hassle of medical tests. Here, instead of relying on medical exams, insurance providers typically ask a series of health questions and review the applicant's medical history to determine their level of risk.
Let’s know more about term insurance without medical tests and whether there are any such plans available for NRIs.
Yes, buying a term insurance plan is totally worth it due to a number of reasons!
One of the biggest benefits is its affordability compared to other types of life insurance. This can make it an attractive option for individuals who need coverage but have a limited budget. Term insurance can also be a good choice for those who have dependents or financial obligations, as it provides a lump-sum payment to beneficiaries in case of the policyholder's demise. This payment can help cover expenses such as mortgages, debts, and living costs.
Additionally, some term policies offer options to convert to a permanent policy, providing flexibility for those who may require lifelong coverage. Overall, term insurance can provide financial security to individuals and their loved ones at affordable rates.
Listed below are the key features of a term insurance plan in India for NRIs -
Have a look at the major benefits of having a term insurance plan below -
Term insurance plans offer a death benefit feature, which provides a lump sum payment to the beneficiaries of the policyholder in case the latter passes away during the policy term. The death benefit is usually tax-free and can be used by the beneficiaries to cover funeral expenses, replace lost income, pay off debts, or meet other financial goals.
The death benefit amount is determined by the policyholder at the time of purchasing the term insurance policy and can be adjusted based on their requirements and financial planning. This feature provides financial protection to the policyholder's loved ones during a difficult time, making term insurance an important tool for financial planning and protecting one's family's financial future.
Term insurance policies generally don’t offer a maturity benefit feature, as they are primarily designed to provide financial protection to the policyholder's beneficiaries in case of their untimely death. Unlike other types of life insurance policies, term insurance policies do not typically accumulate a cash value that can be paid out upon maturity.
However, some insurance providers may offer term insurance policies with the return of premium, which provides a refund of the premiums paid if the policyholder outlives the policy term. It's important to carefully review the terms and conditions of any term insurance policy to understand the benefits and limitations of the coverage provided.
Term insurance policies often offer additional benefits or riders that can be added to the policy for an extra cost. These riders can enhance coverage and provide additional financial protection to the policyholder and their beneficiaries.
Common riders for term insurance include the critical illness rider, accidental death rider, disability rider, waiver of premium rider, and more. These riders or add-ons can provide coverage for situations such as the diagnosis of a critical illness, accidental death, disability, or the policyholder becoming unable to pay premiums due to a disability.
By adding riders to their term insurance policy, one can get customised coverage that better suits their requirements. However, it is important to carefully review the terms and costs of each rider before making a decision.
Yes, you can get term insurance without a medical test in India. However, it must be noted that if you have any pre-existing health condition, the respective insurance provider will ask you for a medical test.
Finding a suitable term insurance plan without a medical test involves a few steps. All you need to do is conduct research to know which companies provide term insurance without medical tests. You can request quotes on different providers’ websites and go through all the available plans. Finally, select the one that matches your requirements.
Make sure to take the below-mentioned points into consideration before buying term insurance without a medical test:
Here are some of the top term insurance plans without medical tests available in India -
Ans: In most cases, yes, you must go through a medical test if you have a pre-existing health issue. However, the requirement for medical tests in such cases depends on the respective provider.
Ans: Here is a list of the documents required -
Ans: No, you don’t require a medical test in a convertible insurance policy.