Life Insurance · intermediate
Term Insurance
Term life insurance: pure term and return-of-premium plans, group term cover, increasing and decreasing cover, riders, how a death claim is settled, cover for NRIs, and the points on which term plans are compared.
- 01Pure Term Plans — Structure, Benefits & LimitationsWhat a pure term plan is, why it costs less per rupee of death cover than savings-type life policies, what it does not pay, and the rules on free-look, grace period and tax that apply to it.
- 02Return of Premium (TROP) Term PlansHow a return of premium term plan (TROP) differs from a pure term plan: the refund of base premiums on survival, what the refund leaves out, what happens on death or if premiums stop, and how the refund is compared with investing the premium difference.
- 03Group Term Life InsuranceHow group term life insurance works: one master policy for a group, the free cover limit, how the premium is worked out and renewed, what happens when a member leaves, and the rules that apply to group claims.
- 04Increasing & Decreasing Term PlansTerm plans whose sum assured changes during the term: increasing cover that rises at a rate fixed in the policy, decreasing cover that follows a loan schedule, and the rules that apply when such cover is sold alongside a loan.
- 05Term Plan Riders — Accidental Death, Critical Illness, Waiver of PremiumWhat riders on a term plan are, how the accidental death, critical illness, waiver of premium and disability riders work, the regulatory caps on rider premium and rider benefit, and the conditions each rider carries.
- 06Claim Settlement Process & DocumentationHow a death claim on a term policy is made and decided: who claims, the time limits on the insurer, interest for delay, when section 45 lets an insurer contest a policy, and the limited situations in which less than the sum assured is paid.
- 07Term Insurance for NRIsHow term insurance from an Indian insurer works for a non-resident Indian: underwriting by country of residence, how premiums are paid, what a claim for a death abroad involves, and the Indian tax treatment of premiums.
- 08Comparison Framework — How to Evaluate Term PlansThe points on which term plans are compared beyond the premium: the insurer's claims record and how to read a claim settlement ratio, solvency, cover and payout options, riders and premium payment options, and the features that regulation makes the same everywhere.