Term insurance is a type of insurance that Provide life coverage for a predetermined term (number of years). A lump sum payment equal to the sum promised will be made to the nominee or beneficiary if the insured passes away during the policy’s term.
Here are some of the main characteristics of Term insurance:-
1-Option for staggered claims payment
The term plan’s option for staggered claims payouts will allay your concerns if you are concerned that the lump sum payment made by the insurer will be too much for your family to bear. If you choose this option, only a portion of the insurance payout will be made in a single amount to your family; the remainder will be made in yearly or monthly payments.
2-Flexibility in premium payment
There are several premium payment methods available with term insurance. They accept annual, quarterly, and monthly payments. You may select a premium payment plan based on comfort thanks to the flexibility.
Section 80C of the Income-tax Act of 1961 allows for tax advantages for premiums paid for term insurance plans. Therefore, policyholders may deduct up to Rs 1.5 lakh from the premiums they paid for themselves, their spouses, or their children.
Plans for term insurance also provide customers with advantages for survival. According to such plans, when the policy matures, the remaining policyholders would receive the whole premium payment made during the course of the policy as one lump sum.
5-Simple to purchase
Among all of the benefits of term insurance, this specific element has elevated the insurance product to a high level of popularity. You may either use the Internet to do it yourself or locate a reputable insurance agent who will take care of purchasing the cover for you. Locate the website of the insurance provider you trust and submit your insurance application there using their online form. You can also pay the premiums online. In general, internet term plans are less expensive than traditional ones.
Term plans also include death benefits, which entitle a nominee or beneficiary to a certain sum of money in the event that the policyholder passes away. No matter when point in the policy’s duration the policyholder dies, the amount will depend on the term plan.
The term plan is only a means of protecting your life. The family of the insured receives a sum promised from the insurer if the policyholder passes away before the plan’s term is over. However, no benefits are given at plan maturity if the policyholder lives the period. This explains why the insurance plan is reasonably priced. By making affordable premium payments, you can protect your family’s financial future.
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8-Term insurance with premium refunds
You can choose a term plan with the “return of premiums” feature if you are concerned about the term plan’s lack of maturity benefit. The term plan with return of premiums is a type of insurance contract where, at plan maturity, the insurer reimburses the policyholder for all premiums paid. The somewhat higher cost of this insurance coverage is more than offset by the additional benefit.
Why should you choose to get term insurance?
Financial security is provided. In the sad event that the insured passes away, a term plan can assist your family members or dependents in easily meeting their financial obligations.
Easy debt repayment: Policyholders have the option of borrowing money against their assets, such as their vehicle or home. Your family can be forced to shoulder the repayment of any debts or loans while you are gone. They might use the phrase insurance pay-out in these circumstances to settle the remaining bills.
Offers lifelong critical illness protection: Term insurance products provide lifetime critical illness protection in addition to protecting your family or dependents following the death of the policyholder. So, if someone in your family has a serious sickness like cancer or a heart attack, a term plan can help you pay for their medical care.