What Is Term Insurance? And it’s Benefits?

What Is Term Insurance? And it’s Benefits?

Term insurance is one of the hot-selling concepts in India as a higher percentage of people are seen subscribing to it. Compared to the whole life plan, the term insurance is inexpensive and has many benefits that you can avail.

This post will talk about the term insurance and its key benefits. All set to know more? Let’s get started!

What is Term Insurance?

A term insurance is a type of insurance offered by a majority of insurance service providers. They promise to pay a sum assured if a person dies during the duration of the policy. The term insurance covers only the death risks and that’s why it is an inexpensive option compared to whole life policy as it asks lower premiums.

You never when can accidents strike you which may prove fatal and you no longer may live anymore, leaving your family and loved ones in jeopardy.

Although nothing can replace you but when a sum assured is provided by an insurance company to your nominee or family to streamline many major aspects of life after you.  

As a result, given the condition that life is unpredictable and beyond our control, the term insurance can take care of the financial issues of one’s family.

Since there is never a perfect time to enroll in a term insurance plan, you can avail the insurance plan as per your requirements. Go online and search ‘term insurance’ on Google to find out so many companies offering term insurances at lower premiums.

In the context of our discussion, let’s list out some of the key benefits of the term insurance plans.

Term insurance plan benefits at a glance

  • It covers what it says

One of the major benefits of availing a term insurance plan is its ability to provide coverage for what it promises. Compared to whole life or endowment plans which covers risk coverage along with the savings, term plans are straightforward. It means that provide coverage for the selected tenor for a premium that you pay.

  • Affordable  

Compared to other plans which may ask a higher amount as the invitation price and many have many terms and conditions, the term insurance more competitive. Why? It’s because it offers the insured with the option of paying lower premiums and have simpler terms and conditions.

  • Flexibility

When you avail a term insurance and if you stop paying the premiums, it means that your policy comes to an end. As a result, you no longer get any assured sum and there is no saving component involved in this plan. Hence, it offers flexibility to people.

  • Provides you tax benefits

You also need to know that the premium that you pay for the term insurance plan is eligible for offering you tax benefits under the Section 80C of the Income Tax Act.

  • Lower premiums

Investing in a term insurance plan lest you never feel the financial burden of investing in an insurance plan as the premium paid for these can be peanuts. Yes, the premiums for the term insurance is kept at an affordable rate so that everyone can go ahead and secure their lives financially.

The Bottom Line

With accidents and other unpredictable elements waiting to happen if you don’t care, why risk the lives of your loved ones in your absence? You can easily compare all the best term insurance plans online, and pick one as per your needs and affordability.

Living with a term insurance plan is a great move than living without it and everyone should try to get one today!