There’s no questioning the fact that it is always better to secure one’s financial future, and this is only possible by choosing the perfect financial safety instruments. Among all the insurance plans, term life insurance plans are termed to be a simple and effective way to secure the future of the family. This is the most basic protection plan that can help families financially when required.
A term insurance policy acts as a protection plan for individuals and families and ensures financial stability in unforeseen situations. When an individual is looking for financial stability, this is the most secured form of life insurance plan.
There are so many famous companies that offer different types of life insurance plans. It is quite important to choose wisely the perfect insurance plan that can fit well with the requirement of individuals and families.
Term Insurance Benefits To Keep In Mind
There are many benefits of a term insurance policy. It is essential to understand the benefits before buying the best life insurance plan:
1. Lowest Premium – Right in a lower premium, one can get huge life coverage with this type of insurance. This is insurance that has the lowest premium when compared to other plans.
2. Lower Tenure – There is no fixed period in life insurance. The period of a term insurance policy depends on an individual this can be any number of years as per requirement.
3. Benefits Of Fast Starting – The premium of this insurance is based on one’s age. Less the age, less is the premium. It thus brings in the advantage of starting early.
4. Benefit In Income Tax – A term insurance policy also brings in tax rebates. When you pay the premium you can enjoy a certain amount of rebate in total tax you pay out of earning.
5. Longer Tenure – This type of insurance can be planned for longer tenure as well. Many companies allow taking this loan for up to 70 years of age.
6. Fixed Premium – Once decided the premium for this type of insurance will never be raised by the insurer. It remains the same as decided at the time of obtaining the plan.
7. Financial Stability – This plan brings in financial security for a family that brings in the added benefit of peace of mind.
8. Continuity Of Policy – If at any point in time, an individual is unable to pay the premium due to any reason, the plan will continue with the total amount received with the last paid premium and total coverage will be managed accordingly.
After knowing the benefits of term plans, one can decide how important it is to buy this plan. Before choosing the perfect plan, it is important to carry out a term plan comparison and review types of plans available:
1. Level Term Plan – This is the most basic type of plan in which the sum insured is not changed with the tenure of the plan.
2. Return Of Premium Plans – Unlike the basic plans, in this plan premiums paid is returned to the candidate after a fixed period of time if there is no causality.
3. Increasing Term Plans – This is a plan that lets the candidate can increase the sum assured at fixed tenure. This has different premiums.
4. Decreasing Term Plans – In this plan, the candidate can decrease the total sum assured. This can decrease year after year.
5. Convertible Term Plans – One can choose to opt for a term insurance policy that can be converted to another plan when required.
6. Term Plans With Riders – This plan comes with added benefits of critical illness cover, disability cover, accidental death, etc.
On knowing the different types of term plans, it is easy to decide which best term plan is as per one’s requirement.
How To Buy A Term Insurance Policy?
One can consult an insurance agent to buy a term insurance policy. Different companies provide different types of term plans suitable for individuals. While choosing perfect term insurance policy, it is important to compare different term plans, the premium to be paid.One can also calculate the total income tax to pay through online income tax calculators. Analyze the requirement, compare different plans, wisely know the premium and life cover amount and finally choose the best plans suitable for the family.
An amazing benefit of a term insurance policy makes it the most purchased plan for individuals. The unparallel benefits of such plans make it the best plan to obtain financial security for the family. Before ones choose the best term plan for the family, it is important to identify the benefits that one can incur from different types of life insurance plan.
