What Is Term Insurance? What Are Its Benefits?
Published On Nov 16, 2021
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Term insurance is one of the most popular life insurance products. A great portion of its growing popularity in the country can be attributed to the fact that it is a pure life insurance plan. It helps life assured to keep their family and loved ones financially secured in case of an unfortunate event leading to their loss of life. In this article, we have talked about the key reasons for the popularity of term insurance plans in India.
Benefit of Having A Term Insurance Policy
Following are some of the key reasons which have made term insurance plans the most talked about plans in the life insurance category -
1. Term Insurance Are Very Simple To Understand
Term insurance plans reach more and more people because of its simplicity. It covers all your financial responsibilities. All you need to do is to ensure that the premium is being on time. Term insurance plans are very simple to understand by the mass of people. So more and more people are opting for life insurance plans. People, nowadays, opt for term insurance plans over any other insurance plans.
2. These Plans Are Supremely Affordable
A large number of people are going in for term life insurance because it is very affordable. Sometimes the premium for a given period of time is as low as 0.1. Such a low premium facilitates the larger mass to opt for term life insurance. The term life insurance reaches out to those masses who cannot afford to have expensive insurance plans so they blindly choose these plans so as to enjoy all the benefits at a very affordable premium.
3. Higher Coverage Than Compared To Traditional Plans
A term life insurance plan offers a much higher sum assured so that the life assured can leave the family and dependents enough money so that they don’t have to go through any form of financial hardship in the assured’s absence. Term life insurance takes care of all the financial responsibilities of the family and the others who are dependent on them without any bindings. Hence one more reason to opt for term insurance plans over any other traditional plans.
4. Tax Benefits
While primarily the reason for buying a term life insurance plan is to secure your family’s future. But not only that but also it comes with a lot of tax benefits too. People who think that term life insurance plans come with a lot of tax payments are wrong. They benefit the assured in overcoming tax related issues. Hence one more reason to opt for a term life insurance plan.
5. Premiums Are Locked For The Duration Of The Plans
When you purchase a term life insurance plan, you are effectively locking the premium you will be paying for the given term and the next term till the end of the plan. And this is where it becomes highly beneficial for the purchaser if he or she starts his or her term plan as early as possible because premiums are lowest possible at the younger ages.
6. High Flexibility
Flexibility is one of the major advantages of a term plan. You can select any online or offline plans for which health plans are not mandatory. You can also change the plan or customize a plan as and when required.
The given article provides all the possible reasons that term life insurance plans are so popular. The term life insurance plans are very simplistic and affordable hence can be reached out to a very large mass of people. The term life insurance plans can help the life assured family to leave life with financial hardships in the life assured’s absence.
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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.