Benefits of Buying a Term Insurance Plan

Posted by sammi maheshwari on February 28th, 2018

Term insurance plan is an insurance policy designed to help the policyholder secure the future of their loved ones, in case the policyholder meets with a tragic and unexpected demise. During the time that the term insurance policy is active, the policy issuer is bound to pay a death benefit to the beneficiary in case of such an unfortunate event. While there are no returns on a term insurance policy, one cannot deny the benefit of receiving a death benefit in case the policyholder meets an untimely demise. Moreover, one can buy term insurance online or offline at quite low premium amounts.

There are many more benefits of getting a term insurance policy. Some of the main benefits of buying a term insurance policy are:

1. Long-term protection

A term insurance policy allows people to opt for protection for quite a long period of time. In fact, one can choose to be insured (or have life cover) till the age of 80 if one so desires. This is a really useful feature for those looking to protect their loved ones for a longer period of time.

2. Coverage is very high

When one chooses to buy a term insurance policy, he/she gets quite a high life cover relative to the premium that is paid, i.e., the payout or financial coverage that the policy holder’s beneficiaries receive in the unfortunate and tragic event that the policyholder dies is very high. This is a huge benefit when associated to the small premium amounts that need to be paid for the life coverage.

3. Financial stability of policyholders loved ones

Buy buying term insurance online or offline, the policyholder can ensure the financial stability of his/her loved ones. No one wants to leave behind a close family that is financially deprived. Taking a term insurance policy can ensure that the policy holder’s loved ones continue to enjoy at least a basic level of financial stability in their absence.

4. Tax savings

A term insurance policy allows a person to save tax under section 80C and section 10 (10D) of the Income Tax Act, 1961.

5. Additional riders

When buying term insurance online or offline, the policyholder can choose to add additional riders to the term insurance policy by paying a slightly higher premium amount. These riders can be things such as a critical illness rider or accident rider. With these riders, additional protection against untoward incidents can be had, and all for a very reasonable amount by way of premiums.

6. Peace of mind

As there is no restriction on the use of the payout, one can ensure that debts and outstanding payments can be covered with the same. Thus, getting a term insurance policy can give a person a lot of peace of mind since they are assured of their family’s financial stability and settlement of debts in their absence.

Today, it is quite easy to buy term insurance online from the comfort of one’s home or office, or even on the move through mobile devices. The convenience and availability of term insurance make it quintessential for securing the future of their loved ones against unpredictable eventuality.