What Are The 3Ds In Term Insurance?

Vivek Law: We have been talking a lot about the new age Unit Linked Investment Plans (ULIPs) and the changes that have happened but apparently there are a lot of new things happening on the term insurance space as well. Do you want to take us through some of those changes there? 

Santosh Agarwal: Term insurance typically means that a breadwinner of the family is covered. If you buy a term insurance cover, you get covered through the sum assured that you choose. In case something happens to you, then the sum insured gets paid to your nominee and the nominee can use it after you are not around. Basically, earlier, term insurance was covering only death. We thought that death isn't just one event where the loss of income can happen. It can also happen in the case of disability. A disability could be through an accident or a disease. Critical illness is another event which could mean loss of income. So, we said why just cover death, we should also cover these critical stages which can disrupt your life and the income of the family. So, the new term insurance plans cover death, disease, and disability. 

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