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Term policy offers maximum coverage at an extremely affordable premium. There are several other benefits to avail with a term life insurance.<br>
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Let us understand what a term insurance is? • As the name suggests, it’s an insurance policy that grants the policyholder coverage for a certain i.e. fixed duration of time. • It is a pure form of life insurance and offers death benefits if the insured dies before the expiry of the policy.
It can effectively care for the financial needs of your family in the event of sudden death. • The death benefit can be paid as lump sum or as a monthly payment to your family. Or, another scenario where some part of the lump sum will be paid and the rest will be given as regular monthly payment. All this can be decided at the time of buying your policy.
What are the advantages of term insurance? • Term insurance is considered as the most economical insurance with extremely affordable premiums. • Affordable premiums do not put much pressure on the finances compared to other life insurances like whole life insurance and endowment plan. You can easily make savings, spend on luxuries without having to shell a huge chunk on insurance.
As a result, such insurance can be afforded by people with low income and protect their interests. • This is one of the reasons why it is highly sought after in the market today. • These plans are customizable and many insurance companies present great offers to accommodate your immediate requirements.
You can also make use of additional riders to formulate your term life insurance. Riders like accidental death, critical illness, permanent disability, are some other riders that you can have merged with your term plan. • Offering maximum coverage at a comparably low price, term insurance cover can be increased, turned into other insurance types like whole life.
In the case of sudden death or disability of the insured, the benefit that you derive can be effectively used to care for the financial needs of the beneficiaries. • This money can also be used to repay loans taken by the policyholder.
The premiums are even lower when you are in the prime of your age and opting for a term plan. Whether you have people that depend on you financially or otherwise, buying a term plan is extremely beneficial. With low premium, it shouldn’t cost you much to have this policy. • There are tax benefits under Section 80C of the Indian Income Tax for you to enjoy.
Be smart, consider your exact needs and opt for an insurance that will secure your interests and those of your family in event when you won’t be around to provide for them.
