We all know that policyholders get a no-claim bonus on their motor insurance policies and avail continuity benefits on health insurance plans. But, did you aware with the fact that insured person also accrue loyalty rewards on term insurance India?
Insurance plans are long-term products and insurance companies in India observe many pre-mature policy terminations. In majority of cases, it is the insured person who is at lost when the policy is surrendered. But, still it is not the desired choice for the insurance company in India either. Hence, insurers offer loyalty additions in terms of extra advantages to the policyholder for keeping the term insurance India in force throughout the complete policy tenure.
Generally, loyalty additions are given on investment plans like endowment plan and unit linked insurance policies, where a majority part of premium allocates towards an investment fund. Insurers can calculate this reward based on a percentage of the sum insured and paid either at regular intervals or at the insurance maturity along with other maturity advantages. Therefore, the benefit computation as well as eligibility criteria could vary from one insurer to another and insurance product to insurance product. Consider a public sector insurance companies in India give loyalty additions to insured persons from tenth year onwards.
In this scenario, the insurance company calculates the loyalty additions by estimating the difference between the guaranteed additions and the performance of the insurer. These additional benefits get collected over the year and then received by the policyholder at the time of maturity. On the other hand, policyholders should have own a policy at least for around ten years to become eligible for the benefit of loyalty reward.
A policy offered by a private insurer provides loyalty benefits on the sixth life insurance policy year. More importantly, this wealth booster money goes on increasing as policyholder’s fund grows. Therefore, insured receive the advantage of compounding which over the years can make higher returns at the time of maturity.
Policyholders need to keep few things in mind that a loyalty reward benefit alone doesn’t prove an insurance policy good. So, remember to consider this extra advantage as plus-point offered to an insured person to motivate policyholders to keep their investment active.
Insurance buyers should know that other policy features like rates, return on investment, and cover size and fund quality along with other similar factors are more important factors for comparing online term insurance for whole life. It is advisable to go through all these features while selecting the right term insurance policy that fits your budget and needs.
Insurance experts suggest buyers to compare plans online offered by different insurance companies in India and then choose the best policy. If customers have any doubt about loyalty rewards, then take help of insurance service providers and clear all queries.
Today’s majority of policyholders is still not familiar with the exact benefits of term insurance policy and hence, fails to receive maximum advantages from it. So, try to get more knowledge about the same before buying a policy.