What Is Term Insurance and What Are Its Benefits?
Updated On Nov 19, 2021
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Term Insurance is life insurance which as the name suggests provides an insurance cover or coverage at a fixed rate of recurring payments for a fixed amount of time which is relevant to the payment plan opted by the investor upon exhaustion of that period the umbrella of coverage either has to be surrendered or the client may choose to buy an extension of the policy with new payment options available for the extension of the term of insurance.
It is best suitable for first-time investors in Insurance as it is relatively cheap and provides coverage for a specific period of time meaning that you won’t be stuck paying premiums for the longest time. Also, it provides for additional optional coverage in case of critical illness at an affordable rate.
Benefits Offered By Term Plans
Following are the important benefits of this highly popular insurance scheme are :
Easy To Grasp Details
Term insurance plans prove to be a widely popular plan due to their simple to understand nature. It checks all the boxes for a financially responsible individual there is only one thing you need to focus on with this plan is timely payment of your premiums and you are all sorted with the benefits thus it proves to be a popular plan among the earning youth with a hectic life this provides them with one less thing to be worried about.
Term Life insurance comes off as a new blinging thing to invest in as it is highly affordable the premium can be as low as 495 rupees per month, a low premium like this makes it highly affordable for a large mass of people as it doesn’t cut any benefits due to its low cost and that’s what makes it a highly demanded insurance plan.
A Term Insurance gives a higher risk coverage so that it is a worthwhile plan for investors to invest in and so that it facilitates a healthy compensation for the family due to the loss of life of their beloved individual. Takes into account the financial responsibility of the insured’s family after their demise and thus is helpful and efficient than other traditional plans.
Along with its primary objective of taking care of financial responsibilities of the client after their unfortunate demise it also provides additional benefits to the client during their life one of these being the tax benefits, the payment of premiums qualify for tax deductions under section 80D of income tax act moreover the payment upon death is also exempted from tax so it provides overall savings to the clients and even their families after their passing.
Term Insurance comes with a high degree of flexibility regarding its premium numeration one can opt for a plan with a lower premium and then there is the additional assistance in payment of premiums by providing the option for both online or offline modes of payment. There is also the facility of changing the plans and the payment method which can be done very easily.
As mentioned above we can see how the term Insurance proves to be a highly desirable and popular plan due to the simplicity and affordable nature of the policy. It along with providing savings to the client during their lifetime also provides for additional financial security for their family after their demise.
Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.