Term Life Insurance: Know The Benefits And The Reasons Why You Need A Term Life Insurance
Life Insurance advertisements have been circling around us for as long as we can remember. As kids, we saw many ads talking of being there for your family at every step even after our existence meets its end. Such advertisements had a huge impact on our families as it made our parents aware of the importance of life insurance. What followed was an increase in the number of people opting for life insurance. If you happen to be one of those who has life insurance, opting for Term Life Insurance will only add on to the benefits that you already have within your reach. And if you are one of those who hasn’t got any life insurance so far, then the Term Life Insurance is the best one to start with.
What is Term Insurance?
Term Insurance provides financial protection to the beneficiaries in case of death of the life insured during the term of the policy. It is the most affordable form of life insurance coverage. The Term Life Insurance has been specially designed to take the utmost care of the family members in case the bread-earner passes away. Once a person gets this insurance he/she can be assured that his/her family will be financially taken care of even in their absence. With the insurance helping them out at every step, the family of the insurer can lead a normal, healthy life without worrying about cutting down on their lifestyle. While picking out an insurance plan, you’ll need to be careful a lot of things. It has to be an educated choice as in the end it concerns your family. Your choice should be able to help your family maintain their lifestyle, inflation should be kept in an account and lastly, it should take care of your existing liabilities preventing the worries of EMI repayments.
Benefits of Term Life Insurance
A term life insurance is the simplest form of financial protection to the beneficiaries in case of death of the life insured during the term of the policy. It acts as that pillar of support that will keep the family of the insurer afloat, financially. The term plan offers peace of mind with affordable premiums and a life cover that the insurer can choose depending on his/her family’s lifestyle and financial needs.
Some of the benefits of getting a term life insurance are mentioned below.
- Large life insurance cover at affordable prices are possible.
- It protects your loved ones against any sort of unforeseen event.
- It can also cover your financial liabilities.
- Term life insurances also help the insurer during critical illness.
- It also offers tax benefits on premium paid and the payout received.
- Supplementary income is given in case of loss of income due to accidental disabilities or illness.
Why should you get a Term Insurance Plan?
As already mentioned above Term Life Insurances not just protect the insured's family in the absence, it also extends support if the one taking the insurance is critically ill. Not just that, it comes with a lot of other benefits, all of which have already been mentioned in the above paragraph.
Useful Features of Term Insurance Plans
Some of the useful features of Term Life Insurances are mentioned below.
- Most cost-effective plan.
- The Policy Premium is to be paid only till retirement.
- With term life insurance you will have the flexibility to receive the payout as a monthly income in addition to a lump sum amount.
- Choose riders to make your term plan more comprehensive.
- At major life-stages, you can enhance/increase the insurance cover.
Term Life Insurance you get variants of life insurance plans to pick from at major life-stages like, young and married, married with no children, married with young children, parents with children in school, nearing retirement. All of these stages come with their own variant.
What are Riders in Term Life Insurance?
In order to enhance the base policy coverage, Riders are opted for. These are additional optional features. There are many riders that can be attached to the base term plan. A few built-in riders are offered by most of the companies. It is crucial to check whether the Riders are an inbuilt feature in the same policy plan or can be opted for as an add-on to the policy.
Types of Riders in Term Life Insurance
Most common Riders in Term Insurance are:
- Accidental Death Benefit Rider
- Accidental Total and Permanent Disability Rider
- Critical Illness Rider
- Waiver of Premium
- Accelerated Death Benefit Rider
- Hospital Cash Rider
Reasons Why Term Insurance is Affordable
There is no investment component involved. It is a pure insurance plan.
The nominee will be paid by the insurance company only in a case where the life assured dies during the policy period.
The online purchase of term insurance helps save a lot of money on administration and other charges.
You will have to pay only a sum of 2-3% of your annual income for a cover of 20 times of your annual income.
ICICI Term Insurance
ICICI Prudential Life Insurance aims to protect the income of an individual, in case of any mishappening, by providing the lump sum benefits to the family. In total, there are three ICICI term insurance plans, out of which two are available online. The plan includes protection against multiple risk factors like critical illness, accidents, and demise.
SBI Term Insurance
SBI Term Insurance plan meets the requirement of the buyer by providing financial protection to the family just in case of any unfortunate event. After paying affordable premiums on regular basis, an individual can ensure financial stability and security of his family. The list of SBI Term Insurance plans include SBI Life eshield, SBI Life Smart Shield, SBI Life Saral Shield, and SBI Life Grameen Bima.
Max Life Term Insurance
Max Life Term Insurance gives an individual the flexibility to select the right insurance plan at a competitive price that fulfils all requirements. The plans include Max Life Super Term Plan, Max Life Online Term Plan Plus, and Max Life Premium Return Protection Plan. Furthermore, policyholders get to extend the tenure of the coverage at any time.
Exide Life Term Insurance
Exide Life Term Insurance offers only one plan known as My Term Insurance Plan. Under the plan, the beneficiary gets two options of Death Benefits - The Base which gives paid Sum Assured to the nominee and Family Income Benefit (FIB) with which the policyholder can avail 30-80% of the Sum Assured and 110% of the balance amount in monthly instalments for 5 years. Plus, discounts on premiums are provided to females and non-smokers.
Postal Life Insurance
Where would you find the lowest premium and high coverage in the market today? On Postal Life Insurance. Besides financial protection and security of the family’s future, Postal Life Insurance offers flexible options like changing the nominee’s name and loan against the insurance plan. Additionally, the buyer can opt for more than one Postal Life Insurance plan. The list includes Whole Life Assurance Policy (Suraksha), Convertible Whole Life Assurance Policy (Suvidha), Endowment Assurance Policy (Santosh), Anticipated Endowment Assurance Policy (Sumangal), and Joint Life Assurance (Yugal Suraksha).
Canara HSBC Term Insurance
Canara HSBC Term Insurance offers only one type of plan, known as the eSmart Team Plan, which can be bought online at cheap rates. There are two Death Benefits options to select from. Under the first option, the nominee gets the Sum Assured while under the second option, the nominee gets the Sum Assured along with an Accidental Death Benefits.
HDFC Term Insurance
HDFC Term Insurance gives the highest coverage at the minimal premium rates. HDFC’s Click 2 Protect 3d Plus Plan comes with nine different cover options and ensures the complete financial safety of the policyholder. Another plan, known as Click To Protect Plus Plan, offers four coverage options and preferential premium rates to non-smokers. HDFC CSC Suraksha Plan is available at low cost for people residing in rural areas.