5 reasons to buy a term plan today

In times of financial uncertainty, it is often the steps we take today that can have an impact on the future. Too often we fail to correctly estimate how much money will be needed for future financial goals. Inflation and rising expenses eat into our monthly income steadily.

At the same time, we often fail to factor in one grim fact – we are able to support our families only as long as we are present with them. If we are not, our loved ones may face severe financial difficulties. The best way to remedy this situation is by buying a term insurance plan.

Consider the following reasons to buy a term plan:

1. It is affordable. Term insurance policies are among the most affordable insurance products in India today. This is because the premium payable is quite low. Hence, it is an ideal insurance product for those who do not wish to invest in expensive life insurance policies, but who would like to have sufficient life coverage for their loved ones’ future.
   
   
2. High sum assured. Though the premium on the term plan is quite low, the corresponding sum assured is not. In fact, term plans have some of the highest sum assured amounts across life insurance products in India. This large sum of money can be useful to your loved ones in your absence – many of their personal milestones can be achieved using this money.
   
   
3. Flexibility. Reputed insurance companies in India are offering flexibility in term plans. Apart from simple pure life insurance policies, they are offering different pay-out options and the chance to change the plan matrices if necessary. This was not possible earlier, when only simple term insurance was offered with a lump sum payout.
   
   
4. Low possibility of claim rejection. As per a new mandate from the IRDA (Insurance Regulatory Development Authority), insurance providers cannot penalise the policy holder on grounds of non-disclosure of facts two years after the policy becomes active. However, you must take care to furnish all the correct and latest information about yourself at the time of taking the term plan. This mandate means that future claims made on your policy will likely not be rejected, if your information is correct.
   
   
5. Best way to pay for the future. You may have created savings and made investments for the future. However, in times of high living costs and mounting expenses, these may not last for more than a few months. Realistically, it may not be possible for you to create a savings or investment fund to the tune of crores of Rupees. However, your term plan money can be upwards of Rs 1 crore. Hence, term insurance will hold your family in better stead.

4 ways to claim your term plan

All over India, more and more people are increasingly investing in term insurance plans. Term plans are extremely affordable insurance instruments, which also accord high sum assured on the fruition of the policy. Term insurance helps the deceased’s family stay afloat despite the trauma of losing a loved one.

However, it is important to claim the term insurance money in the correct way. The MetLife term insurance plans have a very simple claim settlement process. Do follow these steps to ensure a speedy settlement of your claim:

1. File through the right channels.

PNB MetLife allows multiple channels for claim settlement. Customers can file a claim through the company’s financial advisor or sales manager. Or he or she can directly file it at the company’s nearest branch office. The company also has a Claims Department at its Head office in Mumbai. Alternatively, there is the option of filing through a partner bank which coordinates the procedure with the company. One more option is to file through the Regional Service Team. It is important to keep all updated contact numbers with you at all times.

2. Mode of intimation.

The customer can intimate PNB MetLife through letter, email or fax. The beneficiary should avoid making claims intimation over the phone. A written communication with a date, subject matter, relevant policy details and your contact details is ideal.

3. Documents requirement.

In case of term insurance plans, the claims fall under the ‘death claims’ and ‘accidental death claim’ categories. You must be very careful to prepare a documents docket to submit to the company with your claims application. The documents required are: Original or notarised death certificate, claimant’s signed statement, attending physician/certifying doctor’s statement, family physician statement, test reports and hospital reports (in case of death due to illness), photo ID and residential address proof of the nominee listed in the policy, attested copy of police FIR in case of unnatural death) and attested copy of post mortem report (in case of unnatural death).

Any other documents such as cremation/burial certificate and newspaper-announced (obituaries and news coverage) items may be called for in case of extraordinary circumstances.

4. Knowing the company policy on claims.

PNB MetLife settles term insurance plans claims within 15 days of receiving the complete and correct set of documents and claim application form. Once these documents are received, there is a scrutiny process to check all the documents and furnished information. The insurance money is then computed. Claims may take longer to settle in case the documents are incomplete or the information is found to be incorrect or misleading.