Mr & Mrs. Singhania have just moved into the neighbourhood recently from the Western part of the city. They have a three-year-old boy named Ankush in their five years nuptial life. But rumours suggest that the bread earner of the family has been terribly suffering from leukaemia since last Christmas.
After a few months of hurdles, Mr. Singhania passed away leaving his wife and son all alone in this World.
Although his family went through an emotional and financial stress, he made a wise plan a few years back for the sake of his family. He bought a term insurance policy which is the cheapest life insurance policy with a low premium and high covers. So his family got a death benefit of a lump-sum amount of money which was 1000 times of the premium. For instance, if he has opted for a policy with Rs 10,000 premium per year, his family will receive a cover of Rs 1,000,000 with an additional cover because of disability. Thus a little concern of Mr Singhania towards his family covered the risk of such a distress.
So few benefits that the Singhania family received by buying the term insurance policy are :
Less Premium, High Cover
Everyone thought that the family would be crippled after his death but his family got a high cover which was 1000 times of the premium.
The policy covered the risk of being unable to pay the rest premiums due to the critical illness of Mr Singhania before the age of 65.
A waiver of premium rider is an optional benefit on term life insurance policies. Thus, his family didn't have to worry about the premiums when the bread earner of the family was critically disabled.
Waiver of premium for disability is a provision in a term insurance policy that states the insurance company will not require the insured to pay the premium if they are seriously injured. Since last February Mr Singhania got completely paralysed and he could not pay the premiums. Thus he got covered with cover.
His family also got the funeral expenses after his death.
Though the loss of Ankush's father could not be compensated, still the policy lessened the financial stress. A small initiative for his family reduced the tension of such an intense situation. Moreover, the premium waiver can be used as Ankush's tuition fees or for any future use.