What are term insurance? Why should you buy term insurance? Term Insurance Benefits, Term Insurance Claim Settlement Ratio, Financial Security, Premium Flexibility, Complete Information about Term Life Insurance.
Human life is of an unpredictable nature. We make many plans for our future and live our life very well. No matter how well we plan to live the life of our dreams, any untoward event like sudden illness, accident, disability or even death can affect not only us personally but also our family.
When we suddenly lose the sole breadwinner of our family, the loss of him/her not only has an emotional impact but also has a financial impact, which becomes difficult for any family members to cope up with. Buying a term life insurance plan can be a savior in such a situation. It provides instant financial security to your family so that you can live your dreams well. Let us go through this article today to know what is term life insurance and why you should buy it –
What Is Term Life Insurance?
Term life insurance is the simplest and purest form of life insurance that provides financial protection to your family at the most affordable rates. Term life insurance policy provides financial coverage to the policyholder for a specific tenure. If the policy holder dies during the policy term, the nominee becomes eligible to receive the Sum Assured. Once the policy holder completes the policy term, the premium paid till now is not refunded. In this type of insurance, the sum insured is very high, while the premium charged is very low.
Why Should You Buy Term Life Insurance?
Term Life Insurance policies not only provide financial protection to the entire family in case of accidental death of the policyholder but also help in meeting the long term financial goals of your family. Compared to other types of life insurance products, term life insurance policies are very beneficial with very low premiums. Why should you buy a term life insurance policy? Know about the 5 main reasons-
Helps In Providing Financial Security
A term plan is not an investment plan it is just pure insurance. It is an insurance plan that helps you build a strong financial cover for your family even after your death. In the event of any unfortunate event, death or disability, the nominee receives a lump sum amount that can be used to take care of their daily expenses and pay off your loans. When you buy a policy at a young age, it is quite economical.
When you opt for the policy at a young age, you may go with the work Sum Assured but depending on the growing needs of the family, you can also modify the Sum Assured. For example, if you get married at the age of 25 and plan for a child at the age of 30, depending on the stage of your life and your growing responsibilities, you can choose to increase the coverage amount.
With Low Premium Rate
When you go to buy any life insurance policy, they are quite expensive. But as compared to other types of life insurance plans, term life insurance policy is quite affordable. The biggest advantage of this type of plan is that the premium amount remains the same throughout the policy term. Aging has no effect on it.
Highly Flexible
Term life insurance policies are very easy to understand. In today’s technological era, you can buy term life insurance policy both online and offline. You can take coverage as per your requirement. Primarily, you can get coverage up to a maximum of 20 times your annual income. The best part of this plan is that there is no need to undergo a health check-up for coverage amount less than 50 lakhs. Apart from this, you can also pay your premium on monthly basis. You can select the nominee according to you. Once selected, you can go ahead and change your nominee at any time.
Also Read – Why life insurance is important to have?
Less Claim Rejection
When we choose a life insurance policy, we first see what percentage of claims have been provided by the insurance company. But if we talk about term life insurance policies, then the claim rejection ratio is very low, which means that the chances of claim rejection are very less. Chances of claim rejection increase when you have not disclosed any serious facts related to your health conditions and lifestyle habits.
Riders Amenities
Through term life insurance policy, you provide financial security to your family. But it becomes very important to opt for a rider in this to provide better protection to your family even in case of critical illness, permanent or partial disability. A term plan can be purchased with Waiver of Premium, Permanent Disability, Critical Illness Rider and Accidental Death Benefit Rider. It can go a long way in providing better security to your family.
Also Read – What Is Life Insurance | How To Choose Best Life Insurance
Tax Benefits
So far we have learned why you should buy a term life insurance policy but there is another benefit that you can avail during the policy term is tax benefits (tax benefits). As per the Income Tax Act 1961 of India, a policyholder can get a tax deduction of up to Rs 1,50,000 under Section 80C of the Act, while the beneficiary can get tax free Sum Assured under Section 10(10D).
Frequently Asked Questions(FAQ’s)
Q1. What is meant by term life insurance?
Term life insurance is the simplest and purest form of life insurance that provides financial protection to your family at the most affordable rates. One can get a larger sum insured at a lower premium amount.
Q2. Should I take a term life insurance plan?
If you are the only earner in your family and the whole family is dependent on your income, then in such a situation you should definitely take a term insurance plan. Term insurance plans provide financial protection to the entire family in case of unfortunate death of the policyholder as well as help in meeting the long term financial goals of the family.
Q3. How do I choose a term life insurance plan for myself?
Choosing a term life insurance plan is very simple, you can choose the policy through both online and offline modes. You can choose the policy suitable for you by visiting the website of any insurance company.
The Bottom Line
Term life insurance is the simplest and purest form of life insurance that provides financial protection to your family at the most affordable rates. Term insurance plans provide financial protection to the entire family in case of unfortunate death of the policyholder as well as the long term financial goals of the family. also helps to fulfill You can select the policy through both online and offline mode.
