Introduction
The world of term plans or insurance plans has taken a leap and changed over the years. Earlier, it was more of a selling component rather than being purchased. But this concept has changed for all the right reasons. You can now even opt for an online term plan which was not considered a good idea in yesteryears. Well, you must have a term plan since it is the need of the hour.
A term plan is a kind of life insurance policy that offers you financial coverage for a specific term or specified years. If any uncertain event such as death occurs when the policy is still in force, the members of the insured will be given a death benefit. It is an affordable alternative to permanent life insurance. You can opt from the range of insurance policies depending upon your requirement.
Why should you get a term plan at the earliest?
Buying a term plan is always in the back of your mind but for some reason, you keep delaying the decision. It’s because you do not understand its features completely. It is different from life insurance and you must know how term plan works before it’s too late. Here are a few reasons why you should buy a term plan without delaying it any further.
- Low premium- A term plan does not demand any hefty payment of premium. As compared to other life insurance policies, it asks for a relatively lower premium. For instance, if you are 30 years old, you can buy a cover of Rs. 1 crore for a term of 30 years just by paying an annual premium of Rs. 8,500, which is quite affordable.
- Financial security- Financial security is an essential part of our lives and it should be taken seriously since any uncertain event can take place anytime. In the case of term plans, your family members get the financial benefit of your term plan in case of your untimely death. To get the maximum benefits, make sure that you revise the term plan as per the passing years.
- Claim rejection- The rejection claim in term plans are lower than other life insurance policies. This happens only when you provide false information related to your health or finances. Having said that, you must disclose accurate details pertaining to your lifestyle, health, and finance so that you can claim your return without any hassle.
- Flexible nature- Term insurance plans are known for their flexibility. You can choose to pay your premium amount annually, quarterly, monthly, semi-annually, as well as in one go or lump sum payment.
- Riders- You can update your policy depending upon your requirements by adding it purchasing riders to your plans such as partial disability, critical illness, accidental death, income benefits, or waiver of premium.
Conclusion
Term insurance plans are the simplest form of financial coverage that you can buy for your loved ones. It does not require a bigger investment and can be done as per your needs. You just need to identify the benefits and the particular term you want your policy to have. Do not underestimate the value of having a term insurance plan as you need it more than ever now for your family.
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