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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.