<div><em>Looking for a term plan that can be more customised? Here’s an online term plan with several options to choose from, a joint life cover and cover till age 75.<strong> Sunil Dhawan</strong> writes</em></div><div> </div><div>PNB Metlife has recently launched a term plan titled ‘Mera Term Plan’, which would only be available online. The life insurance needs are best me through a pure term plan as they come at low cost and offer high sum assured. However, not all of us have the similar kind of requirements when it comes to financial protecting the family members. </div><div> </div><div>Mera Term Plan makes an attempt to provide several options within the same plan so as to cater to varying needs of the individual. Unlike most other term plan offerings in the market today, this plan addresses four distinct needs in an individual’s life through these four versions – </div><div> </div><div>-<span class="Apple-tab-span" style="white-space:pre"> </span>A lump sum pay out to nominee in case of death. </div><div>-<span class="Apple-tab-span" style="white-space:pre"> </span>A lump sum pay out plus a regular monthly income for 10 years</div><div>-<span class="Apple-tab-span" style="white-space:pre"> </span>A lump sum pay out plus increasing monthly income</div><div>-<span class="Apple-tab-span" style="white-space:pre"> </span>A lump sum pay out plus a regular monthly income till child turns 21</div><div>-<span class="Apple-tab-span" style="white-space:pre"> </span></div><div>In addition, there are few other optional benefit that one can add-on to any of the four versions of Mera Term plan – Joint life benefit and the Life stage protection. Only of these can be added to the main policy.</div><div> </div><div><strong>Joint Life Benefit</strong></div><div>In these times, it’s common for both spouses to be working. However, most such working couple avoid taking life insurance citing reason that they are not financially dependent on each other. Financial planners suggest life cover even for working couples. The one earning more should be taking high coverage to provide for at least 80 per cent of household expenses. </div><div> </div><div>Joint life option ensures that life cover for surviving spouse continues even if the policyholder dies. All future premiums for your partner’s cover will be waived off. The maximum cover under joint-life for the spouse is limited to 50 per cent of primary policyholder’s coverage and is capped at Rs. 50 lakh. For homemakers, it’s capped at Rs 25 lakh.</div><div> </div><div><strong>Life Stage Protection </strong></div><div>As one ages, responsibilities increase too. At different life stage there are financial obligations to be fulfilled. Buying additional coverage requires medical underwriting and may get declined because of adverse health record. Life stage protection option gives you opportunity to buy an additional cover as per the then prevailing age and premium without any medical examination on the following circumstances. On marriage, one may add cover equal to 50 per cent of the original cover and on first and second child, another 25 per cent can be added up to a maximum of Rs 50 lakh. </div><div> </div><div>The end note: A term plan appear to be the simplest insurance product. However, instead of buying it solely on the basis of lowest premium may not be the best way. Buy a term plan that helps you meet your foreseeable requirements. Reviewing your requirements therefore is important as one ages. Mera term plan is one such plan that could help you not only act as an income replacement tool but also ensure funds are properly utilized by surviving family member in addition to providing life stage protection. </div><div> </div><div> </div><div><em>sunil@businessworld.in</em></div><div> </div><div>For more on personal finance stories:</div><div>http:/businessworld.in/tags/sunil-dhawan</div>
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