Advantages Of The Term Life Insurance Plan In Your Life
Term Life insurance is one of the popular insurance plans today
. Term insurance is that insurance policy which is valid for a certain period of time. As the term expires, so does the term insurance plan. Term life insurance plan is very much suited for salaried employees as well as for business people who are income earners for the family. Term life insurance will provide financial security for their families. Term insurance plan is also useful for those who are financially not so sound. Even for them, it is a very good plan because the cost of the insurance is less in comparison with other insurance and particularly life insurance policies which offer death benefit as well as annuity after the completion of the term.The life or term of a term insurance policy can vary between 5 years to 30 years. Because of this flexibility, term insurance plan can cater well to people from different walks of life. As the cost of premium is lower in term insurance plan, it can offer a very good support to people with different backgrounds.
Term insurance will come to an end after the term of the insurance policy comes to an end. Renewal of the policy is dependant on the prevailing terms and conditions of insurance company.
Term insurance plan is also advantageous because it is less complicated than whole life policies which offer death benefit as well as annuity after the policys life comes to an end. But, term insurance policy does not provide any annuity after term expires. It only provides death benefits. Term insurance plans offer the basic coverage which is death benefit. This is basic for an insurance policy and Term insurance plans serve best in this regard.
Depending upon their requirements and affordability, people can choose varying amounts in term life insurance. For example, if a person seeks a term insurance policy which can provide Rs 2 lacs in case of premature death, which a term of may be 10 years, then premium amount can be approximately Rs 1000 per month. Term policies can be very cost effective that they are affordable by many people.
Another advantage of term life insurance is that, premiums remain constant throughout the term of insurance plan. This is advantageous for people with steady income as they can plan their finances well in advance to meet cost of premiums.
Death benefits received in case of premature death of insured can be utilized for many different uses such as education, marriage, investment, etc. These death benefits can either be paid in lump sum or in the form of annuity to be paid as regular income.
Some term life insurance policies may be converted to whole life insurance plans depending upon the terms and conditions of insurance companies. This is advantageous because of the dual benefits that it offers in terms of death benefit for some time and annuity being paid out if the policy holder survives through the term of the policy.
For good term plan comparison, one can view term insurance policies offered by various insurance companies. Term plan comparison can be taken up with the help of insurance portals such as Policy Bazaar which offer online term plan comparison between policies from different companies.
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