Term life insurance policy is a type of life insurance that covers an individual for a certain period in return for a specific amount of premium paid by them. It will provide guaranteed payment of the stated death benefit to the nominee if the policyholder passes away during the term period specified in the policy.
There are wide range of the best term plans available in the market. You can choose any one of them according to your requirement and suitability.
What Exactly is a Term Life Insurance Policy?
A term life insurance policy is a type of the life insurance product where the insurance company provides coverage for a certain term in return for a specific premium amount paid over a period of time. If the policyholder passes away during the term specified in the policy, the death benefit is provided to the family of the policyholder.
Buying a term life insurance is also a cost free and easy process. You can simply buy it online by visiting official website of the insurance company.
How Does a Term Life Insurance Policy Work?
A term life insurance policy provides compensation to the nominee for the unfortunate loss of the policyholder during the policy tenure. A sum assured provided to the nominee is known as a death benefit. It helps you to financially secure your loved ones in your absence. The term life insurance plans are affordable and provide high coverage amount.
There are also some term life insurance plans that provide maturity benefit upon the life assured’s survival till the completion of the entire policy term. A term life insurance policy helps you to create a financial cushion for your loved ones and help them to fulfil their financial needs in your absence.
Why Should You Buy a Term Life Insurance Policy?
Many people who are not aware regarding what is term life insurance policy and what are the benefits of it. So, they do not consider investing in a term plan. It is important to understand the objective of a term life insurance policy. The main reason to purchase a term life insurance policy is that it is the simplest and best way to create a financial protection net for your loved ones in case of your unfortunate demise.
There are many reasons to invest in a term life insurance policy, here are the most important ones.
Varieties of Plans
You can also choose the coverage of the policy by comparing a wide range of the best term plans available online. You can simply go through every plan and understand the benefits and premium rates online. It is always helpful to compare various plans online and choose the best term plan that suits your requirements. Along with other additional benefits, a term life insurance policy also provides death benefit to your dependents when you are not around them.
Tax Benefits
A term life insurance policy also offers the benefits of tax exemption. You can save a good amount of money by saving tax within Section 80C and Section 10(10D). Also, the premium paid by you towards critical illness benefit is also qualified for tax exemption as per Section 80C of the Income Tax Act, 1961.
Easily Available
When you choose to buy a term life insurance policy, you can easily do it online anytime you want to. You do not have to go to one insurance provider to another in search of the best term plan for you. Buying it online is quite safe and stress free process. It will save a lot of time and also you can securely pay the premiums.
Affordable Premium Rates
The premium rates under a term life insurance policy are quite affordable according to the nature of the coverage provided. You can avail high coverage at nominal premium rates. It is advisable to buy a term life insurance policy at a young age because older people require more coverage which can increase the premium.
Additional Rider Benefit
You can add additional coverage known as riders in your term life insurance policy. It will help you to increase the scope of coverage under a term life insurance policy. The riders can be added to the policy in exchange of additional premium. Some commonly opted life insurance riders are Accidental Death Benefit, Critical Illness Rider, Waiver of Premium Rider, etc.
Conclusion
It is easy to understand what is term life insurance and how it is beneficial to you. The term life insurance policy offers high insurance coverage at a very affordable premium rate. A term life insurance policy is important as it provides life cover for the specified period. It also safeguards the financial future of the family. In case of the policyholder passes away, the family will receive financial support as a death benefit. It is simple and available at a cost effective premium.
