We all have heard about Term Insurance but how many of you actually knows, what it is and what are the benefits of Term Insurance. We will discuss term insurance policies and their benefits.
Before we start, we would love to pick your mind by asking you a question.
When was the last time you met someone without a term insurance policy?
Have you ever thought of getting an online term plan?
We are going to take a guess and say it would have been a long time. As time progresses, we find more people indeed find themselves getting an insurance policy.
Insurance companies offers tons of term insurance plans as per the needs of individuals. This term insurance policy is very important for people who are Alert and Attentive. People who understand that anything can happen to anyone anytime and leaving a financial security for their loved ones is the best they can do today for a Better Tomorrow even if anything bad happens to them.
What is Term Insurance?
Term insurance provides financial protection for a certain period or in lump sum, in case of unfortunate demise of the policy owner. The Term insurance plan is usually paid up in premiums over a period. Policy Holder can opt for Riders that can give additional benefits along with the financial security it covers like accidental death, any disability, in case of any critical illness diagnosis, in case of any terminal illness diagnosis, Health expenses, waiver of premium and more.
Term Insurance is one of the best ways to provide financial aid for the loved ones, in case of unfortunate demise. The economic benefit is usually offered as a lump sum, giving the term owner a chance to look after their loved ones, even after they are long gone.
The Term Insurance plan can also be modified to solve problems such as school fees and marriage financing. From the range of programs, selecting this one will give you ways to be strategic about finance after the loss of the term owner.
There are a ton of benefits for acquiring a term insurance plan, but we must have a basic idea about the types of insurance plans available.
Advantages of Term Insurance Plans
Signing yourselves up for a term insurance policy can be one of the best moves for financial security. It can also help ease out the effects of uncertainty of life from time to time.
Apart from this, we have put together the benefits a person can get by signing a term insurance policy.
- Getting a Term Insurance plan is simple
Simplicity can be your primary reason to get a term insurance plan from a provider. The idea is well laid out for easy understanding. To own a term insurance policy, you need to sign up with an insurance service provider. You can sign up by selecting one of their plans that suits your needs. After signing up for your perfect plan, you need to pay premium month after month to get a proper offer. Make sure you pay the premiums in time to get the maximum benefits from your policy.
- Term Insurance Plans offer high covers with low premiums
Due to the highly competitive market in the insurance industry, providers are offering top value plans at very low premiums.
For Example: You can now avail one crore worth term insurance plans by paying as little as six hundred (600) rupees per month.
You can witness the prices of the premium getting reduced as you start availing the plans at a much younger age. The prices are slashed to provoke the more youthful generation into getting insurance policies for themselves, as they begin in jobs.
- Limited pay for a long coverage
Term insurance providers offer life insurance policies for low premium payment periods. With the small payment period, you can avail the life insurance for an extended period.
One famous example is the ten-year premium plan. By registering under this plan, you can avail coverage of up to 25 years by paying a premium for a minimum of 10 years.
As more people start registering for insurance policies across the country, the service providers seemingly increase the coverage rate of the plans.
- Various pay-out options of Term Insurance
When a consumer enables for an insurance policy, he gives his loved ones the advantage of financial aid in his/her absence. There are specific options on how the financial assistance arrives for his family, relatives or maybe even friends.
Full Lump sum on maturity of the plan
Lump sum on maturity + monthly income
Lump sum on maturity + Increasing monthly income
Full Lump sum + monthly income till child turns 21
These options will serve as a strategic means to release financial aid, according to the needs of the family and loved ones.
Options with the monthly income are also highly beneficial, as they help your family fight the impact of inflation on your money.
- The benefit of term policy add on riders
Policy add on riders are additional features that can enable the user additional benefits along with their term insurance.
These term policy riders are useful when you need premium waivers for a short period. We have some example below for easy understanding.
Critical illness rider
Terminal illness rider
Disability or Dismemberment rider
Waiver of premium rider
Accidental death benefit Rider
- Tax Benefits
Term Insurance gets you tax deduction under section 80c of Income Tax act 1961. In short, you will get maximum financial benefits as soon as you get yourself a Life Insurance.
- Life Partner Benefit
Term plan gives an amazing benefit to your life partner, which covers your partner’s life too. This benefit gets all the future premiums waived off, but only if the sum assured is more than 50 Lacs. The benefit gives a coverage of around 50% of sum assured.
- Life Stage Protection
This benefit gives you protection on certain stages of life like on marriage, on first child and on second child too. What else would one want from a term insurance? You get covered for all the stages of life, and a financial security in case of any mishappening, critical illness, disability or demise.
We sincerely hope this article added some value to your life.