Benefits & Features of Term Insurance to Know?

In today’s unprecedented times, our lives are always exposed to a precarious limbo and one cannot afford to be less careful about it. A good term insurance plan can alleviate unforeseen risks and ill-fated incidents in our lives. But given the ocean of options, it can be confusing to understand the features and benefits of a good term policy. 

Here we bust the bubble for you to make a wiser investment decision.

Features of a term insurance plan

 

Affordability is the Eye Turner!

Term insurance plans are customizable not just as per your goals but also affordable premiums. In case of any misfortune or untimely death of the insured members, the appointed nominee gets the benefits. At times some good term plans not only to pay the death benefit but ensure financial security in the event of death of the breadwinner. Buying a good term insurance plan safeguards your loved ones against unknown debts, loans and helps to lead a stable life financially.

Buying a term plan is easy!

Unlike other insurance products in the market, buying a term insurance plan is not much of a Herculean task . Based on the current financial dependencies and capabilities, one can accurately choose the right plan. 

Flexibility of payment 

The freedom to choose when to pay the premium makes it a smoother journey for the investor. Term insurance plans can be chosen as annual, semi-annual, quarterly, monthly, or weekly. This approach makes it a popular choice of all insurance products as it is flexible as per the financial capabilities of the investor. There is one more interesting flexibility which nowadays companies are offering, Like Limited Premium Payment Option. In a limited pay plan, the policyholder pays premium only for a specific pre-agreed duration like 5 years, 10 years, 12years, or 15 years, but he will be covered for max term whichever is applicable or chosen by the customer.  However, the insured gets full coverage for the entire policy term, irrespective of the premium payment period. There is one more option that customers can opt for: Single pay – one-time lump sum payment.

 

No capital build-up

Term insurance plans don’t add up wealth as any universal policy would. The compensation of life insurance is directly credited if any misfortunes occur. If one stops the premium payments or the policy matures (reaches its end of term), there will be zero capital. Premiums would be used purely for the death benefit.

 

Benefits of a term insurance plan

Simple to understand. 

Term insurance plans are not as complex as compared to other insurance products. It simply aims to offer the sum assured to the nominee in case of the death of the policyholder. All one has to ensure is the timely payment of the premiums. 

Term plans offer higher coverage than traditional plans.

The traditional plans at times failed to cater to all the members of the policyholder financially. Term plans offer much higher coverage and ensure comprehensive coverage for your family and loved ones. For example, on average coverage of 1 cr is achievable with a premium ranging from 10000 to 20000 INR. 

Term plans offer tax benefits

Term insurance plans provide tax benefits while you can secure your family’s future. You can read more details of the following section of the income tax act – section 80C, section 80D, and section 10(10 D). 

 

Bottomline

After understanding the benefits and features of term insurance plans, one can still be confused to decide the best one that suits your needs. This is when Khasnis Prime Wealth helps you choose the right term insurance plan for a secure financial future for your loved ones even in your absence.