Term life policies are one of the simplest life insurance plans. They are preferred by many for this reason. The premiums are usually on the lower side, and the plans can be boosted with riders and benefits if the consumer chooses to do so.
However, there may be some who want the simplistic nature of a term plan but would like the plan to work in alignment with their life trajectory, goals, and offer more than basic life cover. They may not mind these additional features making their premiums slightly more expensive.
If you are someone who is expecting more from a term insurance plan while keeping its basic design intact, smart term plans are an option you may like to consider.
What Are Smart Term Plans?
Level term plans offer little more than death benefits. They will offer a life cover plus any features offered via riders in the plan chosen by the customer.
In such cases, a policyholder has no benefits to look forward to if the plan matures. If you are looking for maturity benefits, smart term plans are the option that will help you with that.
These plans offer maturity benefits in the form of a return of premium. Thus, if the life assured survives the policy duration and the plan matures, the policyholder can expect their premium amount to be returned to them.
Features
As with regular level term plans, these plans are also available to individuals between 18 to 65 years of age. Some smart plans may offer the ‘return of premium’ as an option that you can choose.
In case you decide to forgo the premium return option, you can choose to convert the plan into a whole life cover. By choosing this option, you can extend your term plan life cover up to 99 years of age.
Your smart term insurance plan can be further boosted with add-ons, usually offered via riders and benefits. Riders can be chosen by the policyholder and may add to your expenses, thus increasing your premiums. You can get an estimate of your premiums by using a smart term insurance premium calculator.
Benefits may be offered within the plan, thus eliminating the need for the customer to choose from available options.
Commonly available riders and benefits include:
- Accidental death
- Accidental total permanent disability
- Critical illness
- Waiver of premium
Depending on the insurance provider, you may be offered a more exhaustive choice of add-ons.
When choosing add-ons, pick options that suit your needs rather than going for popular or accessible options. For example, if health concerns plague you or your family, and you are growing more worried about falling sick as you get older, a critical illness add-on may be a crucial choice for you. It may cover up to 55 ailments and conditions that are deemed serious. With this cover, you will be able to receive financial support from your policy if you are diagnosed with one of these conditions in the future.
Smart Term Plan Eligibility
Most smart term plans are available to all consumers who have access to level term life policies. People between 18 to 60 years of age can buy these policies. While a whole life cover extends up to 99 years of age, term life cover without a return of premium is 85 years, and 75 years with a return of premium.
You will require the following documents to get a smart term insurance plan:
- Proof of identity
- Proof of age
- Proof of address
- Proof of income
- Recent photograph
The availability of smart term insurance means that you can now expect more from your term plan, without having it be unaffordable or expensive. If you have been looking for term insurance with maturity benefits and more features, these plans may be the right option for you.
