Life is uncertain, a known fact, and is surrounded by multiple risks like disability, disease, accident or death. Such risks come uninvited and create a substantial financial and emotional dent in one life. It is imperative to plan a financial arrangement for such necessities in life to keep your family secured and protected. Term plans are the purest form of life insurance that will help you financially secure the family at the lowest cost. People usually mix insurance with investment and are always worried about the return on investment, which is a big mistake. Ideally, insurance and investment should not be blended as they will not suffice the complete financial requirement of your family in case of an untimely death.
Term insurance key features
- LESS EXPENSIVE- On average, life insurance rates are more affordable for term than whole life insurance because term insurance premium coverage for a predetermined time. If you outlive the period and the policy expires, your beneficiaries don’t receive the death benefit, so it’s less risk to the insurer.
- MORE FLEXIBLE- You have many options when choosing how long your term life insurance should last. Typically, you can buy coverage for one, five or thirty-year. Policies that last for one or five years can help cover short-term debts or expenses you currently pay, like child tuition.
- GOOD FOR YOUNG FAMILIES- Because term life covers only a specific period and is generally less expensive than permanent life insurance, it’s an excellent choice for young families looking for temporary coverage. For example, we can buy term insurance plans to cover the years your family relies on you financially and lower your coverage when your children become self-sufficient.
- SIMPLICITY- Term insurance plans is easy to understand, making it simple to shop for and compare life insurance quotes. The need to make only three main decisions how much life insurance coverage you need, how long you want the range to last and which insurer you want to do business
Term life insurance advantages
- Issued in the name of the policyholder: One of the primaries of a life insurance plan is that it is issued only in the policyholder’s name. The individual purchases a life insurance policy and pays the requisite term insurance premium.
- FLEXIBLE PREMIUM PAYMENTS: To enjoy a life cover, we are required to pay premiums to the insurance service provider. We can also choose the frequency of premium payments you wish to make.
- CUSTOMIZABLE TENURE: When you purchase a life insurance policy, you are required to choose the tenure of the plan. The policy offers protection only until the end of the selected tenure, known as the policy term.
- CUSTOMIZABLE SUM ASSURED: The sum assured component of a life insurance plan is the pay-out that your nominee gets from the insurance service provider in the event of your demise.
- INVESTMENT COMPONENT- Not all life insurance policies stick to just providing a life cover. Unit linked insurance plans and saving plans come with an investment component over and above a life cover.
CONCLUSION
There are many features and benefits of life insurance at your disposal. If you check out the features offered, you can customize the plan to the best of your needs. Having a life insurance plan is one of the initiatives you can take to secure your life goal financially. before you purchase a life insurance plan, make sure