How to secure your family with a Term Insurance Plan?
A term insurance plan provides financial security to your family in your absence at the lowest cost. It should be bought as soon as you start earning. You will enjoy more benefits, such as high life cover at low premiums. Regardless of whether you have dependents when you initially begin earning, you should not defer purchasing a term insurance plan as the premium gets higher with age.
Although several people still underestimate the benefits of term insurance, experts suggest it is the ideal financial tool to safeguard your family financially during uncertainties. The dependants of the policyholder might need to confront financial burden in the event that the sole earner of the family dies inferable from a mishap or sickness. Of course, keeping away from uncertainties is not possible, but setting yourself up ahead of time against them is, without a doubt, something that you can deal with. Alongside saving funds, putting resources into a term insurance plan can help you in getting your family’s future secured in your absence. Let’s dig deeper into the concept of Term Insurance.
What is a Term Insurance Plan?
Term protection is a sort of life insurance offering lump-sum amounts to policy nominees in case of the sudden demise of the policyholder within the policy tenure. You, as the policyholder, are required to pay a premium to keep the policy active and enjoy its benefits. The tenure of a term insurance policy might differ. It might go from just 5 years to the whole lifetime of the policyholder.
There are certainly other elements to consider while purchasing a term insurance plan, such as the insurer’s claim settlement ratio, its reputation, the premium, the sum assured, and the riders available with the specific policies.
Significant Benefits of buying a Term Insurance Plan
Below are the most important advantages that one should know before purchasing a term plan.
- High Death Benefits at low premiums: Term insurance provides a large death benefit at the lowest premium rates. Since premiums of term insurance plans remain the same for the entire policy term. So, it is better to invest in term insurance at an early age.
- Ideal for covering your debts: Term insurance plans are the best option for covering your debts like home loans, personal loans, or car loans. A small premium provides you a large sum assured which helps your family to take care of your outstanding debts when you are not around.
- Younger policy buyers get higher life cover at a lower cost: Younger individuals might gain more benefits at relatively lower prices, maybe more than the immediate requirements, while guaranteeing the necessary level of coverage when their necessities and family commitments expand in the future, regardless of whether this implies that they become uninsurable.
Additional benefits with Term Insurance
Apart from the standard benefits of the term insurance, you also get a choice to include riders in your protection plan. These riders can be benefited by paying an extra premium. The riders offer extended coverage choices which offer security to you against any uncertainties, which is standard term insurance. Some of the famous riders that you can buy with your term insurance plans are as per the following:
- Waiver of Premium: Under this rider, when you are unable to premium payment as a result of any disability due to loss of income, your term insurance plan would remain active with the help of this rider.
- Accidental Death Benefit: Under this rider, the policy nominee is given an extra sum assured if the policyholder dies due to an accident.
- Income Benefit: Under this rider, the candidate is permitted to get additional pay other than the sum assured on a month-on-month basis in case of the policyholder’s demise.
Renewing your Term Insurance Plan
Renewing your term insurance on time helps you in keeping up with the legitimacy of the advantages presented under the plan. If you get your term plan renewed after a particular time span, you are needed to pay an additional interest apart from your actual payable premium. A lapsed term insurance policy even puts the security of your family in danger.
The bottom line is that term insurance is notable for its affordable premiums against the high coverage amount it offers; nonetheless, it doesn’t imply that one needs to ignore the other benefits of term insurance. Therefore, buy term insurance today to give comprehensive financial security to your family in your absence. To compare various term insurance plans from top insurers in India, you can visit iiflinsurance.com and pick the right one as per your budget and requirements.