Regular term insurance vs term insurance with 'limited pay'?
Thread.👇 (1/n)
Generally, for a term plan, a longer cover means a lengthy duration of premium payments.
This could involve paying premiums even after retirement to keep your policy up and running.
👉Well, not if you have a limited premium plan.
💡This plan asks you to pay premiums for a limited term (could be 5 years, 10 years, etc), but your cover continues for a longer duration.
👉This is great for those guys who aren’t sure if they can afford premiums for years to come but still want full coverage.
Here, the chances of the policy lapsing from missing a payment reduce drastically.
But this isn’t all rosy. Since you’ll be paying premiums for a shorter span, insurers charge higher premiums, thus increasing your financial burden in the initial years.
Further, limited premium plans might look cheaper if you compare absolute differences in total premiums under a limited plan versus a regular term plan.
👉But, there’s also an opportunity cost involved here.
If you pay higher premiums, your funds in hand come down.
You might just make a lot more money from investing the extra funds in other financial instruments.
But at the end of the day, it all boils down to individual needs, payment ability, and life stage.
A regular plan is advisable for fixed-income persons. But a limited liability plan might be more suitable for ones with short career spans or early retirement plans.
If you're looking to buy term insurance, feel free to talk to Ditto today. We come with a spam-free guarantee and zero pressure to buy. So you can talk to us and make a decision on your own. Visit Ditto now- bit.ly/3pl07rB (n/n)
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52 years ago, three astronauts decided to embark on the Apollo 11 mission- the 1st manned endeavor to land on the Moon.
But they were going without life #insurance since no insurer was willing to take the risk.
So they came up with a clever plan👇 (1/n)
Imagine being selected as the first human to set foot on the moon. But here’s the catch: you're going without life insurance.
So, if you die on the mission, your family will have to fend for themselves.
This was exactly the situation Apollo 11 astronauts found themselves in.
See, the risks were sky-high (literally). The rocket could combust, the landing could flop, and whatnot. In fact, during the Apollo 1 rehearsal, a capsule caught fire and the entire crew died.
Why should you buy health insurance at an early age?
A thread.👇(1/n)
#1 Better prices
Since the insurer is at a lower risk of getting claims, you can get a large cover at low premiums. But do note that these will increase with age.
#2 Comprehensive covers
Healthcare costs keep rising, so your company cover may fall short. Getting an individual cover early can provide you with adequate protection over and above your corporate plan. You’ll also be in a secure spot after retirement.
44% of people from our recent poll believe that one should choose a term #insurance plan with '2 cr cover till 85' over '3 cr till 65', assuming they cost the same.
But that might not be such a smart move, financially speaking, and here's why. 👇 (1/n)
The thing is that a term insurance plan is most effective when your absence deals a financial blow to your family.
God forbid, if something unfortunate happens to you when you're in your 40s or 50s, your children might be young & your spouse may be unable to single-handedly bear the brunt of it all.
You’re a diligent policyholder. You make timely premium payments. So, if the need arises, you’ll obviously expect your insurance company to meet your claims in full.
But, one question looms over you: will my claims be thrown under the bus if my insurer goes under? (2/7)
The answer’s no. Tell you why.
See, it’s not like someone decides to start an insurance company today, & it materializes tomorrow. There are strict regulations at play here.
(3/7)
Everyone's buying term insurance before premiums get hiked by almost 40% this December.
Here's all you need to know about which add-ons you should consider if you're buying a term plan.
A thread.👇 (1/5)
1.) Life Stage Benefit
Term insurance policies are rigid- coverage stays the same till the policy expires.
👉With a life stage rider, the insurer provides the flexibility to increase cover by a certain amount during major life events like getting married & having kids. (2/5)
2.) Waiver of Premiums
Imagine you get disabled (it’s a painful thought, I know). You lose your job, and your family suddenly has no income.
But you have a life insurance policy. Who will pay the premiums?... (2/6)