by Jenny Dsouza
Published Thu, Feb 23rd 2017, 15:31 | Business
Although, things are temporary in life, but, one thing which will last long is the seeds of the hard work and efforts that you sow today. And the best way to do this would be taking a suitable life insurance cover. Markets are filled with various investment products which might confuse you as to which one of them is the best for securing the future of your loved ones. Term policy could be the right key to unlock the doors of safety and security.
Term policy plan is the basic, inexpensive and simple insurance policy that insurance segment offers to the clients. It gives a plain coverage to your family. The beneficiaries will receive a sum assured if anything unfortunate happens to the person who is insured under the policy. However, if the person outlives the policy tenure, he or she may not get any maturity amount. These policies can be bought for tenure of 1 to 30 years.
Ideally, there are two kinds of term policy plans, i.e Annual term insurance plan which gives you cover for one year at a time and has to be renewed each year; and level premium term insurance plan which you can purchase for a specific period for 5, 10 or 20 years. The annual renewable term plan usually has the lowest annual premium to start with but as you gradually age, the premium is bound to rise.
The main concern should be to keep your initial costs down. If you think your earnings will rise significantly in the future, then go for an annual renewable term policy plan. The level premium term plan will let you lock the premium for a specific period; the premium is guaranteed never to change, from the first year to the last. Therefore, it is a smart way to insulate you from any increase in premium. A level term plan is as good as purchasing peace of mind from a fixed-rate mortgage compared to an adjustable-rate one.
Term policy plans help you keep your family secure and financially independent, in your absence. These plans are one of the most preferred forms of insurance because of the low cost at which they come.
Some benefits that you can't get with traditional life insurance policies would be:
• Term policy plan is the cost-effective form of insurance
• Flexibility of the term plan includes coverage up to 35 years
• There is a fixed premium payment which does not increase during the term period
• In case of an untimely death, the dependents will immediately receive the benefit amount specified in the insurance agreement
• You can customize term policy with add-ons such as Waiver of Premium benefit or Accidental Death benefit
Securing the future of one's family is one of the most important goals in life. And term policy plans help you bridge-up the loss of income in case of your untimely death or critical illness. These plans are the best way to shield your family from uncertainties in life due to financial losses.