THE WHY BUY A TERM PLAN AND BENEFITS OF BUYING A TERM INSURANCEPosted by Jenny Dsouza on March 10th, 2017 They say life is unpredictable , one cannot predict does not what the future holds for us . A term insurance helps you plan for the financial security of your family in case of any against such uncertainty . The term insurance is popular because of its it has low premiums making it one of the most affordable insurance policies. If the policyholder and dies during the tenure of the term insurance policy, yet the deceased’s family receives the entire policy amount. If the insured person survives the tenure of the policy he or she doesn’t get any maturity or survival benefits . So while buying the term insurance the insured person should check that the term insurance will be able to provide his family adequate amount of money in case of sudden death . Term plan policies is one of the most affordable in case of providing financial protection to the family . Hence, one should find a deal that is suitable and profitable for an individual’s requirement . Aon sudden death of the policyholder, term plan has provides financial cover for diverse family various benefits it coversneds like child education , immediate financial needs of the spouse and family , also it pays off the existing loans/debts, etc that an individual has taken when he was alive . These features makes term insurance a sensible decision when life this uncertain . The term plan has of two types “ annual renewable term “ in which you just have to pay the cover and premiums are paid for a year at a time that needs to be renewed it annually, and “ level premium term” in which you pay the premium on specific interval period of 5,10 and , 20 years . Annual renewable term initially has low premium which increases as you age while in level premium term the premium is same throughout the policy period , it does not change from the start to the end . Today with digitalization the insurance companies have been providing better services it has made the whole process less time consuming . Online term plan are cheaper than the offline insurance as it doesn’t involve any middle men or inventory costs .Thus, the benefits directly passed to the end users . Here are some reasons that make term insurance an effective tool for the investors :
One should always plan the your investments according to his or her your family and your financial needs. Invest in a suitable term insurance keeping in mind the inflation rate over the years . Ensure that the term insurance covers the financial needs of your family . Like it? Share it!More by this author |