By 
Don’t you try to make sure that your family’s financial needs are always met? One way through which you can provide your loved ones with financial security is by buying term insurance. Let’s first see what kind of insurance it is and how it can act as a safety blanket for your family.
What Is Term Insurance?
Term insurance is a type of life insurance that offers financial compensation to an insured’s beneficiary in the event of the unfortunate demise of the insured during the policy period. The sum insured is payable as a death benefit to the nominee or beneficiary when a death claim is filed with the insurer, provided the plan is premium-paying.
How Does Term Insurance Work?
Term insurance refers to pure insurance coverage. It’s the simplest kind of life insurance to secure the financial future of your family members after your demise. Affordability is a major benefit of a term plan. It offers a high amount of coverage at the lowest premium price. Only if you survive till the policy term completes, you won’t receive any maturity benefit.
On top of affordable premiums, you can further avail a lower premium by buying a term plan online. In that case, you don’t have to pay any commission to agents or intermediaries. Moreover, instance providers offer different premium prices for non-smokers and females which further reduces the cost of premiums. Plus if you go for a large amount of sum insured, you can receive an extra discount on your premium from the insurance company. Besides, if you buy the plan at a young age, you can avail lower premium rates. You will also qualify for a tax benefit as per the Income Tax Act, Section 80C.
How Can Term Life Insurance Benefit Your Loved Ones?
We need to remember that life is unpredictable. Therefore, we must always have a backup financial plan to support our loved ones in our absence to provide for them. Besides, considering rising inflation, education costs, medical costs, lifestyle expenses, EMIs and every other expense are bound to keep increasing with time. In this scenario, the survival of our financial dependents in our absence becomes quite difficult even if there are some savings left.
To fight financial crises in these situations, a considerable corpus or fund is needed for our family members to maintain the same quality of their lifestyle. It’s not possible to generate a major corpus with a handful of investment schemes or savings. Term insurance can help cater to the financial needs of your family and offer financial stability to them via lumpsum payouts in times of crisis.
You can enjoy various benefits from a term plan. There are various payout options (a lump sum amount at the term’s end, regular monthly income and staggered payouts). You can also get multiple riders (waiver of premium rider, critical illness rider and accidental death benefit rider for comprehensive protection against illnesses, accidents, disability or death). You can choose any premium payment mode (annual, semi-annual, quarterly or monthly) based on your convenience. Just ensure to buy the plan from a reputed insurer in India.
Comments