Why Should You Invest In Term Plans Over Other Life Insurance Plans?
Updated On Aug 19, 2022
Table of Contents
Although it is disheartening to talk and dwell about your death you can’t deny the fact that death and accidental situations are bound to happen at some point in your life. Considering this it becomes naturally evident to get yourselves and your families covered with life insurance policies.
These life insurance policies might not provide you with something huge but, they can help you in your toughest situations strongly. Therefore, the debate starts as to which is the best life insurance plan to purchase. Keep reading to find out.
What are Different Types of Life Insurance Plans?
There are various types of life insurance plans you can choose from. Some of the most browsed life insurance plans are listed below:
- Term Life Insurance: Term insurance plans are a secure and affordable way to provide your loved ones with financial assistance in case of your death.
- Whole Life Insurance: Whole life insurance plan as the name suggests provides you coverage for longer durations.
- ULIP: These are similar to endowment plans. They provide you with an option to save and invest at the same time.
- Endowment Plans: These plans are perfect for individuals who wish to earn guaranteed profits over their premiums and save some capital equally.
- Child Insurance Plans: Every parent wishes to safeguard the future of their child. A child life insurance plan provides your kid with maturity benefits on an annual term period or after your child turns a certain age.
Benefits of Term Life Insurance Plans Over Other Plans
There are several reasons why we would suggest you prefer term life insurance plans over other life insurance plans. The reasons listed below provide a clear picture as to why term life insurance plans are better than others.
- Affordability: When you compare the plans and premium details of other plans with term insurance plans you will see a clear distinction between their affordability. Paying premiums for term insurance plans is far easier than for other plans. It is because term life insurance plans are set over a certain duration whereas others like whole life insurance are set for the entire life span. As a result, the premium that you will pay for an insurance plan is less than others.
- Provide Overall Financial Assistance: Term life insurance plans tend to provide you with claimed benefits after the maturation of your policy or after the death of the insured person. Therefore, you don’t need to worry about not receiving your coverage after the maturation of the policy. A term life insurance plan guarantees you fixed financial assistance in terms of urgent needs and provides the essential support that you might need at the moment.
- Flexibility: Paying premiums in term life insurance plans is easy and flexible. You get the freedom to set the duration across which you wish to pay the premiums. You can also select the amount of premium that you wish to pay as per your budget. Therefore, no one can force you to pay a certain fixed amount of premium when you are looking for purchase a term life insurance plan. Also, you get to decide the term period across which you wish to extend your policy.
- Simple and Perfect For All Families: The ease of claiming a term life insurance is unavoidable. The entire process is simple with not much emphasis on complex documentation or other work. Also, the process of gaining coverage is easier than others. Plus, term life insurance plans are great for families who wish to start investing earlier to get maximum benefits.
Conclusion
After looking at all the aspects of why term insurance plans are better than other plans, it is clear that these policies are better to invest in.
Also Read:
