Term insurance enjoys the attention and trust of people; when it comes to safeguarding the financial future of loved ones. You must understand the term insurance plan well; before availing it. Term insurance is a life insurance policy that offers financial protection to the family members of the policyholder.
Term insurance covers the risk of dying before loans are repaid. It protects against the risk of a business loss on the untimely death of a key business person.
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See Also: Why You Need A Term Insurance Plan?
10 Best Things About Term Insurance
- Term insurance is pure risk cover at affordable premiums. If you can spend just over Rs 8,000-10,000 a year, you can buy a term insurance cover of Rs 1 Crore.
- There are many life insurance products in the market. Each product offers different features and benefits. Avail term insurance based on financial goals. Take riders for extra coverage.
- Term insurance is a very simple life insurance plan. You can buy it offline or online. If you decide to buy online, the terms and conditions of the term life plan are displayed on the official website of the insurer.
- Many people do not know the term insurance variants like pure term insurance plan, decreasing term life policy, increasing term life policy, return of premium plan and so on. Each variant comes with special features and benefits.
- Riders are extra cover offered with the term insurance plan. Opt for accidental death benefit rider, critical illness rider or waiver of premium rider which are the most important riders around.
- Term insurance offers insurance along with the tax benefit. You get tax deduction under Section 80C of the Income Tax Act up to Rs 1.5 Lakhs a year. Death benefits are tax free.
- Term insurance offers a great amount of flexibility. It can be customized as per your preferences and needs. Policyholders can also restructure the policy terms with the same insurer or with different insurers.
- It is commonly believed that term insurance is costly. The best thing about term insurance is that when purchased online; it offers a higher cover for a lower premium. This is because there are no insurance agents involved in the process. You pay a higher premium if you avail term life insurance through insurance agents.
- Term insurance premium is based on the age of the applicant and the policy duration. The premium is comparatively lower when you buy at an early age.
- If the policyholder dies within the term of the plan, the beneficial nominee gets the death benefits. The amount can be used to repay existing loans if any. It may also be used for children’s education and marriage.
See Also: Term Insurance For Indians
Tips to Buy Term Life Insurance:
- Buy term life plans based on needs rather than peer pressure.
- Buy term plans online rather than offline
- Be specific on the time you need the cover. Avail across working life.
- Take inflation into account while availing term plans.
- Compare costs and features of term life plans.
See Also: Benefits of Buying Term Insurance Online
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