6 Benefits Of Buying A Term Life Insurance Policy

1. 6 Benefits Of Buying A Term Life Insurance Policy Term life insurance policy is an assurance of fixed coverage for a specific period. It provides financial protection to the beneficiary in case of the policyholder's death during the term insured. This type of insurance mainly offers multiple benefits and is a go-to life insurance plan. Find below the top 5 benefits of having a term life insurance plan. 1. Simple to understand Simplicity is one of the reasons for the rising popularity of term life insurance plans. They are pure insurance coverages that focus on offering your dependents the contracted sum assured in case of any unfortunate circumstances. Simply decide the coverage amount, the coverage period, the term life insurance provider and ensure timely payment of premiums. Usually, an insurance advisor at a term life insurance provider helps you in taking these decisions considering your age, revenue and circumstances. 2. Fixed Premiums When you purchase a term life insurance plan, you effectively lock the premium you will be paying every year until the end of the term plan. For example, if you take a $300000 term plan at the age of 30 years, the premium would come to approximately $250 per year that provides coverage until 75 years of age. It means you are paying $250 every year for the next 45 years, which totals $11250. But if you will buy the term insurance at 45 years, then the premium will be $400, which counts to $18000.

2. This approach makes it highly beneficial. So start your term insurance plan as soon as possible when the premium is lower. 3. Affordable Premiums The premium of a term life insurance policy is usually lower than other policies. Even the whole life insurance plans are expensive, but they consist of other advantages. The total premium is feasible with the mortality charges. The policyholders' possibility of demise is interconnected with the mortality charges. Hence taking a term life insurance plan at a young age has more benefits. The younger the policyholder, the lower the rate of premium. 4. Higher Coverage Term life insurance plans provide much higher coverage as compared to other traditional plans. In traditional plans, the coverage offered is only 7-10 times the total premium you pay. On the other hand, in term life insurance plans, the coverage is over 20 times higher than the total premium. This sum assured helps the family and dependents with enough money, which helps through financial hardships in the absence of the policyholder. 5. Offers Tax benefits It is surprising how several policyholders don't know this, but a term life insurance policy offers extensive tax benefits. Your dependents will receive a lump sum tax-free benefit in case of your demise. But keep in mind, tax laws often change. So consult a tax advisor regularly and keep yourself updated. 6. Renewable or Convertible After the term expires, either the policy can be renewed or converted depending on the plan purchased. The renewable policy will let you extend the term for the same period. However The premium will be applicable as per your age at the time of renewal. The convertible policy helps you convert the term insurance policy into the whole life insurance policy. For example, converting your 25-year term life policy to a whole life policy at the end of the term period. Be smart about term life insurance plans, and don't wait any longer to enrol for one. Contact the best life insurance solution provider in Canada to learn more about term life insurance.