Have Responsibilities Of Financial Dependents? Consider Buying Term Insurance
Updated On Nov 15, 2021
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A term insurance plan is a strategy that safeguards and financially covers the life assured and their loved ones against future risks. It's a low-cost option that can help prepare for future contingency for your financial dependents. In the event of your untimely death, this life insurance sum assured is paid to your nominee. Policyholders can, however, select a Term Plan with a Return of Premium to receive a maturity payout equal to the total of premiums paid. However, It is to be noted that maturity and survivor benefits are not included in regular term plans.
Benefits of A Term Plan
Here are the benefits you can avail by investing in a term plan:
1. Fixed Duration Plans
When you buy a term insurance policy, you're effectively locking in the premium you'll pay this year, next year, and every year after that until the policy expires. And this is where starting your term plan as early as feasible, when premiums are lower, can be quite useful to you. These are fixed-term plans that give adequate financial protection to the life assured's beneficiaries in the event of unforeseen catastrophes.
If you have financial dependents, purchasing a term plan will provide security and peace of mind for your family.
2. Affordable Option
By paying a reasonable premium, you can acquire a high-value life protection from a term insurance plan. Premiums can be paid monthly, semi-annually, or annually. The lower the premium amount you must pay the earlier you get a term insurance plan. Term plans are more economical than other types of insurance, such as endowment plans, which require a larger premium rate.
3. High Coverage Option
A term plan guarantees a significantly larger quantity of money, allowing you to leave enough money for your family and dependents to avoid financial hardship while you are gone. When compared to other plans on the market, term plans are known to provide a higher coverage, considering how low risk these plans are.
4. Critical Illness Benefit
If your term insurance plan includes optional Critical Illness Coverage, you will get a lump-sum payment if you are diagnosed with any of the plan's covered critical illnesses.
This will provide you with the immediate financial assistance you require as well as the piece of mind you require, making it a more worthwhile investment decision.
5. Simple To Understand
The increased popularity of term insurance can be attributed to its simplicity. Term life insurance is a straightforward life insurance policy that focuses on providing the sum assured to your dependents in the event of your death. All you have to do now is make sure the premium is paid in a timely manner and you will have the peace of financial protection over you.
Term life insurance offers various advantages, as detailed in this article. It offers more coverage for a lower price, is easy to understand, and has significant tax advantages. However, before you consider all of the advantages, keep in mind that the primary goal of insurance is protection, not money. This is the goal, term plans adhere to.
You may also like to read - Considering A Term Plan With High Sum Assured? Here's What You Must Know About It
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.