What is Non-Linked Non-Participating Term Insurance

Let’s discuss them in detail:

What is a Non-Participating Insurance Plan?

A Non-Participating Life Insurance plan also called non-par products insurance is a plan in which as a policyholder you do not receive any additional benefits or bonuses as dividends stated by the insurance company at different time intervals. Simply put, the policyholder has no participation in the life insurer’s profits and doesn’t pay out any guaranteed benefits at the time of maturity.

In this, you are required to pay a premium amount and you get a predefined fixed insurance cover. The beneficiary/ nominee gets the amount of sum assured in an event of an unforeseen death of the policyholder.

What is a Non-Linked Term Insurance Plan?

As the name signifies, Non-Linked Plans are not linked to the market. The performance of these plans does not depend on the performance of any principal assets. In this, you pay a fixed amount of premium depending on the sum assured amount. Regardless of the market performance, your beneficiary/nominee receives the sum assured amount in case of your unforeseen death during the policy term.

Features of Non-Linked Non-Participating Term Insurance Plan

1. Not dependent on Market Instability

   Non-linked plans such as term insurance plans do not depend on the secondary market performance. It is a pure life cover that is guaranteed, regardless of the financial market performance of the life insurer. This large cover helps your family remain financially stable in case of your absence and ensures that their goals are met.

2. Returns Are Guaranteed and the Risk is low

   Non-linked and non-participating plans do not receive any share of profits or dividends earned by the insurer. They provide guaranteed returns at low risk.

Wrapping It Up!

Non-linked insurance plan and Non-participating plans have their advantages and limitations. Check your needs and choose the plan that suits your requirements in the right way possible.