Life is
beautiful, but no one can predict what future has in store. Every one of us
wants to give best things to his/her loved ones, and surely well-being of loved
ones is the priority in life. Today, people have started understanding the
importance of insurance. If you are looking for ways to safeguard the financial
future of your family, then a term plan will help you prepare for any
uncertainties. A term insurance is a
smart and cost-effective way to mitigate the risk while making sure that your
near-dear ones are financially secure. The most important reason behind the
popularity of term insurance is its simple to
understand nature. For a term plan, you need to pay low premiums while your
family gets the entire amount in case of any unexpected event. If you complete
the policy tenure, you will not get any maturity or survival benefits.
Let us have a
look at a few reasons why anyone should buy term plans:
Low Premium- Investment is not the part of the
assured amount, so the premium sums for term
insurance plans are lower as compared to any other plans. A person might
have to pay only about 1% of his yearly income to get a life cover.
Financial Security - In the case of
untimely death of an insured person, a term plan would take care of the
financial needs of the family members of the insured person. Thus, by paying a
low premium, one can get the insurance cover and secure the financial future of
his/her loved ones.
Flexibility - Term plans are highly flexible. It
is possible to choose any offline or online plans for which health plans are
not compulsory. Furthermore, you can change the term plan and customize a term insurance plan as and when needed.
Riders - A term rider is the additional
benefit that comes with term plans to suit the needs of the insurance
policyholder. Riders should be taken only when needed. A nominal fee has to be
paid for adding riders to your policy. Partial or permanent disability, death
due to an accident, critical illness, etc. are some of the riders that can be
taken along with term plans. Remember, think about your needs and then only go
for riders if required. Read the offer document carefully for exclusions before
adding a rider.
A term plan has
several benefits. It is certainly a sensible decision to make particularly when
life is so very uncertain in today’s hustles and bustles. However, here are a
few points you need to keep in mind before buying a term plan.
- Think about needs of your family, when you will be around them. The term insurance cover should be enough to provide the everyday expenses and needs of the family in case of an unfortunate event.
- The tenure of the term insurance plan should cover the span that a person intends to work.
