Life is momentary and uncertain. We don’t know what our future holds for us. The only motive of our life is to keep our family secure when we’re gone. To ensure this, you must always opt for a term insurance. A term plan helps to be prepared for such uncertain events. It is cost-effective which helps in reducing the risk. Mostly, term insurance is so popular because even after paying low premiums the family of the deceased would be paid the whole amount.
However, survival benefits or maturity wouldn’t be given the individual survives the policy tenure. However, no the policy companies have started the benefit that the survivor would get back some portion of the total paid premium.
The following points must be kept in mind before buying term insurance:
- The term insurance should benefit the family with sufficient money in case of uncertain deaths.
- The term plan’s tenure must cover up the span than an individual wants to work. The term insurance must be covering at least 65 years.
Reasons to buy term insurance:
Low Premium
As there is no element of investment in the insured amount, the term plan premiums are very less compared to other insurance plans. The individual will be required to pay only one percent of his total annual income in order to get a life cover. The premium of term insurance is much less compared to other insurance policies because there is no element of insured amount.
Term Insurance provides financial security
Life is uncertain so death may come any time. Hence, person should be ready to deal with it and the financial conditions must be strong. To avoid the condition of poor financial conditions, investing in term plans is a very good idea. This would help the family of the individual to cope with their financial needs even after the individual’s uncertain death.
Flexible nature
A good term plan must be highly flexible in nature. Both online and offline plans are available which offer mandatory health plans. As per the requirement, the term plan can be customized. Therefore, make sure the plan you opt for is flexible in nature.
Low claim rejection
Before buying a term plan, make sure all the correct facts regarding health and financial conditions, habits must be disclosed. According to the recent mandate of Insurance Regulatory and Development Authority (IRDA), no claims about the non-disclosure of facts can be made by the insurance company after two years of the policy being effective.
Ensures low brokerage
Brokerage fees are those recurring expenditures which are mentioned under the charges of premium allocation. The brokerage charges decreases with every paid premium. Brokerage charges are only 5 to 6 percent only. However, there are no brokerage charges on a term insurance that is bough online.
Offers riders
A term insurance also offers riders to the customers. Riders are additional benefits which are provided as per the need of the policy holder. These are optional and have a nominal fee charge. Some of the riders provided with term plans are critical illness, sudden death due to accident, disability. However, riders should be bought only if needed. The document must be read carefully before buying it.
Not only the above mentioned benefits but term insurance also comes with a lot of other benefits such as the expense of funeral and burial. It also pays off the loans taken during the course of lifetime of the individual. Term insurance is also a good option as it covers all the extra expenses of the family and also covers the educational charges. Therefore, term insurance is the best to opt for in a momentary, uncertain life.