by Jenny Dsouza
Published Thu, Mar 9th 2017, 13:09 | Business
They say life is unpredictable , one cannot predict does not what the future holds for us . A term insurance helps you plan for the financial security of your family in case of any against such uncertainty . The term insurance is popular because of its it has low premiums making it one of the most affordable insurance policies. If the policyholder and dies during the tenure of the term insurance policy, yet the deceased’s family receives the entire policy amount. If the insured person survives the tenure of the policy he or she doesn’t get any maturity or survival benefits . So while buying the term insurance the insured person should check that the term insurance will be able to provide his family adequate amount of money in case of sudden death .
Term plan policies is one of the most affordable in case of providing financial protection to the family . Hence, one should find a deal that is suitable and profitable for an individual’s requirement . Aon sudden death of the policyholder, term plan has provides financial cover for diverse family various benefits it coversneds like child education , immediate financial needs of the spouse and family , also it pays off the existing loans/debts, etc that an individual has taken when he was alive . These features makes term insurance a sensible decision when life this uncertain .
The term plan has of two types “ annual renewable term “ in which you just have to pay the cover and premiums are paid for a year at a time that needs to be renewed it annually, and “ level premium term” in which you pay the premium on specific interval period of 5,10 and , 20 years . Annual renewable term initially has low premium which increases as you age while in level premium term the premium is same throughout the policy period , it does not change from the start to the end . Today with digitalization the insurance companies have been providing better services it has made the whole process less time consuming . Online term plan are cheaper than the offline insurance as it doesn’t involve any middle men or inventory costs .Thus, the benefits directly passed to the end users .
Here are some reasons that make term insurance an effective tool for the investors :
• It is cheap and affordable. It fits in exactly with the budget of the policy holders. only need to pay the premium that is fixed there are no strings attached .
• Term plan offers tax free death benefit to received by the nominees of the policy holder inder term insurance is tax free. As the insured person has already paid tax to the government no further tax is levied upon the benefit amount
• An untimely death can disrupt the financial stability of an individual’s family to avoid such complexities it is necessary to take care of the financial needs of the family
• Term plan is one of the highly flexible policies; you one can choose buy it online or offline policies . You can also change the plan and also customize it when needed.
• When you buy the insurance make sure you maintain transparency and share about your health conditions , finances , habits etc. with the recent advancements no insurance company can claim that certain information was hidden after two years of policy being effective
• The additional benefit of the riders that comes with the term plan to suit covers the additional needs of the policy holder . An individual should buy a rider when there is a genuine need and should go through the term and conditions carefully . Some riders come along with the policy like include cover against critical illness , accidental death , partial or permanent disability .
One should always plan the your investments according to his or her your family and your financial needs. Invest in a suitable term insurance keeping in mind the inflation rate over the years . Ensure that the term insurance covers the financial needs of your family .