Reasons That Make Term Insurance a Smart Investment
Updated On Nov 04, 2021
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Do you often think about securing the future of your family members? Are you in search of one of the best ways to make sure your loved ones don’t suffer in case anything happens to you? If so, why are you hesitating in buying a term insurance plan?
Term insurance is one of the most popular and important ways by which you can ensure that your loved ones do not end up facing financial struggles in your absence. One must always keep inflation and lifestyle costs along with the premiums in mind while buying a term plan.
Buying term insurance is one of the smartest moves a policyholder can make to achieve their financial goals and coverage needs while ensuring that their family needs are not compromised. How? Let us find out!
Reasons that Make Term Insurance a Smart Investment
The list includes:
- A term life insurance policy is specifically designed to effectively cover the needs of the insured along with their dependents. A term insurance plan comes with an assured death benefit sum that is given to the nominee in the event of the policyholder's demise.
- Term insurance plan is the most affordable means for securing one’s future since premiums are low. What’s best is that one can customise their coverage, add add-on riders and choose payout patterns in accordance with their needs.
- Term insurance comes across as an asset, which helps the policyholder secure or pay off loans in the long-term, even if the primary income earner is no longer able to provide for the family.
- Term insurance plan is the ultimate resource using which unavoidable financial expenses can be handled by the surviving beneficiaries in the event of the death of the policyholder.
A term insurance plan must be selected while keeping a few significant points in mind. Since term insurance does not provide any maturity benefits if the policyholder survives the policy tenure, one should go for a term plan with the option of returning the invested total premium amount at the end of the term in case of the survival of the policyholder. The Return of Premium benefit, in combination with other benefits like maturity benefit, makes the term insurance policy more sizable and a smarter investment return that successfully serves the purpose of insurance coverage.
As far as the features of term insurance plan that one must consider before making their decision are premium, death benefit, rider benefits, tax benefits, surrender value and more like such.
If you have been avoiding the purchase of a term insurance policy thinking that it won’t do justice to your needs or won’t serve your financial purpose well, think again! Term insurance is undoubtedly the best choice you could make.
In case of any confusion, you can always call InsuranceDekho experts for assistance.
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.