Term life insurance policy is known as pure life insurance and a type of life insurance that guarantees payment of a stated death benefit if the policyholder passes away during a specified term. It guarantees payment of a stated death benefit to your family in case you are not around them. In a term life insurance policy, the insurance company covers the life of the policyholder in return for a nominal amount known as “Premium” and for a period known as the term.
Why Should You Buy Term Life Insurance Policy?
When you buy a term life insurance policy, you will ensure that your family has a financially secured future even when you are not around them. The financial needs of your family will be fulfilled. The death benefits from the best term plan can help your loved ones pay for their regular expenses and also achieve their long-term goals.
Plans like smart secure plus plan max life also cover the children’s education costs and future difficulties and provide a steady flow of income to your family in case of the ultimate demise.
How does Term Life Insurance Policy Works?
When you purchase any term life insurance policy, the insurance company determines the premiums based on the policy’s value, your age, gender and health. The insurance company may also require your current medication, occupation, driving record, and family history.
If the policyholder passes away during the policy term, the insurance company will pay the policy’s face value to the beneficiary of the policyholder. This benefit is tax-free and helpful to the policyholder’s family to be financially secured.
Benefits Of Buying Term Life Insurance Policy
There are several great benefits of buying a term life insurance policy. Here are the few most important of them.
- It is a fact that the term life insurance policy is a combination of affordability with simplicity. You can get huge life cover at low premiums rates.
- You can also avail of tax benefits under Section 80C of the Income Tax Act. 1961, for the premiums paid and the sum assured of your term insurance policy.
- Term life insurance policy is also very easy to purchase. You can buy it online with just a few clicks. You can simply visit the website of the insurance company and buy it from there.
- It also provides protection against liabilities so that your family does not suffer the burden of your loans or any other liability.
- You can also add extra protection to your life in case of accident or disability by adding riders to your term life insurance policy.
5 Myths About a Term Life Insurance Policy
Buying a term life insurance policy is the most cost-effective way to get your life insured. However, there are endless advantages, but still, when it comes to buying it, people always give it a second thought.
By busting the following five myths, the insurance seeker can find the simplest and the most economical solution for getting life cover.
Online Purchasing Is Difficult
Many people think buying a term insurance policy online is complicated, but it is the opposite. It is the most hassle-free and the easiest way to availing a life insurance plan. You can have your policy with just a few clicks. Also, it saves extra time. You can go through the insurance company’s website, fill in all required details, and submit it.
Group Life Insurance Is Trustworthy
If you have group life insurance, it is important to the amount. You can also take the help of a financial advisor who will help you to know how much insurance coverage you should have based on your income.
Premiums Are Not Affordable
There are many people who think that they have to pay high premiums rates to get a good return, but it is not true. If you start investing a small amount in the early stages of your life, you can get higher returns and secure your family financially. A term life insurance policy provides the highest life coverage at a nominal cost.
The Coverage of Policy Can Not Be Increased
This is one of the major myths about the term life insurance policy. If the policyholder starts investing in policy based on the income at the age of 21 or 25, they can also increase the amount once they reach 30 or 40 and make it big. Many insurance plans provide the option of increasing the coverage of the insurance policy.
Young People Should Not Buy Term Life Insurance Policy
There is no best time to buy a term life insurance policy. It is never too early or too late to consider a policy no matter your age or financial condition. If you start investing at a young age, you can have a huge amount of coverage after a long time.
Before buying the best term plan, you should always first understand it clearly. It is advisable to research the term life insurance plans and find the one that fits you the best.
