The most important aspect of term insurance is the low premium payable to ensure the financial security of your family.
1. Term Insurance is the most affordable insurance.
Term Insurance plans are more affordable in comparison to the traditional insurance plans. That is, you get more cover under term insurance at lower premiums. Additionally, the term insurance plan is typically a simple life cover for a certain sum. It is termed as ‘sum assured’ offered for a specified period called ‘policy term’. If the person insured dies during the policy term, the sum assured is paid to the nominee. In contrast, if the person insured survives the policy term, there is no pay out to the nominee.
2. Term Insurance is easy to buy.
Term insurance policies can be easily purchased online as well. This is because the basic framework of the term insurance policy does not involve investment of money. Therefore, it is easy to arrive at a term plan that’s right for you with online calculators. However, make sure you fill in the accurate numbers when it comes to your gross income, expenses and dependents. We promise you, it is the simplest and quickest way to have your family insured against financial emergencies.
3. You can modify your claim-payouts to suit your family’s needs.
Take the time to consider how your family will need the money while planning your term insurance claim payouts. Meanwhile, if their requirement of money will be to have access to large sums of money over some period of time, you can plan a staggered claims payout. Also, this format can be considered if you feel the beneficiaries may misuse the complete corpus. A lumpsum can be paid at the initial event of death of the insured. Subsequently, this can be followed by monthly payouts of the remaining amount to be used towards regular expenses. Plan as per your family needs so your insurance can bring them the most comfort.
4. Term Insurance offers premium paying flexibility.
While choosing a term insurance plan, you have the option to pay premiums on a monthly, semi-annual, or annual basis. There are also term plans that offer single pay premium option as well. Such flexibilities offer convenience to the person, who is paying the premium. It also provides you with the ability to pay premium amounts that are in keeping with their budget.
5. Adjust your term plan over time.
You can make adjustments according to the different stages of your life in your term insurance plans. You have the choice of scaling up your insurance cover as your liabilities and responsibilities get bigger over time. Term insurance plans allow you to make amendments to your policy any time during their duration.
6. You can add riders to your basic plan.
Term insurance plans also come with additional covers if you want them. In other words, most term plans offer you riders that include accidental death rider, disability rider, critical illness rider, income benefit rider, waiver of premium rider, etc. All these riders have their own positive attributes that add value to your policy. A single rider is great but a combination of riders will make your policy an all-inclusive, well-rounded one. Ultimately, it’s your loved ones that will benefit.
7. Coverage till your are 100 years old.
Yes, if you want it, you can avail of it under term insurance plan. It’s a great and affordable way to leave a legacy for your loved ones.
8. You get insurance related tax benefits.
You can avail tax benefits under section 80C of the Income Tax Act, 1961 for the premium paid and sum assured of your term insurance plan.
9. A good protection against liabilities.
Most companies insist on you taking a term insurance when you take a home loan or a large business loan. This helps cover the loan you have taken in the event of your death. It also keeps your family out of the stress of paying back the same.
10. Term Insurance plans are a blessing for young families.
Growing a family today can be quite a responsibility given rising costs. Accordingly, a term insurance plan gives you an affordable option to keep your family safe. It also takes care of the loans young couples acquire: home loans, car loans, care of young ones, etc. So, if you are old, term insurance can enable you retire without having to depend on anyone else’s finances.
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