Insurance policies have always played a vital role in contributing to a better financial life. Life is short; hence you need to ensure that your family doesn’t have to fall short due to your loss financially. So, you can buy a term plan to ensure that you can save your family from falling into a financial burden after your unfortunate death.
So, you are quite eager to know about what term insurance is. We have covered it in the article below.
What is term insurance?
Well, term insurance is one of the most basic and most useful insurance plans. Moreover, a term insurance plan is also quite similar to a life insurance policy. One of the best advantages of having a term insurance plan is that it offers large financial returns at quite an affordable price range. A term plan ensures that a person’s family can lead the same life despite their unexpected death. Moreover, you can also find various term insurance plans online and invest in the best.
Here are some of the best reasons why your family needs a term insurance plan.
- Low Premium:
One of the prominent reasons you invest in a term insurance plan is that the premium is so small when comparing the insurance amount. According to recent research, any middle-income person has to only pay 1% of their annual income to avail of term insurance. For example, a term insurance policy of 1 Cr would have an annual premium of around 7000 INR.
- Delay can cause risk:
One of the most common mistakes people make is they make delays while purchasing a term insurance plan. If buying a term insurance plan is on your to-do list, you must ensure that you don’t put it off. Delaying term insurance is like risking the financial security of your family, which you cannot afford to happen. So, if you have a term insurance plan in your mind, buy it right now.
The flexibility of term insurance plans is one of the best reasons why most people find interest in them. There are various term insurance plans available in the market; hence one can find the term insurance plan which can match their lifestyle and budget. One can also customize or change their plan depending on their income.
- Lower chances of claim rejection:
After your death, you will not be available to claim the insurance; hence you have to ensure that your family easily gets the claim without getting rejected from the insurance company. According to India’s insurance regulatory and development authority, no company can reject a term insurance claim after two years of the policy becoming active.
- Better financial security:
Death is unfortunate, but term insurance plans give you a chance to ensure that your family doesn’t have to deal with financial stress after your loss. To prevent the financial burden on your loved ones, it is a great idea to invest in term insurance plans.
All in all, term insurance plans have various advantages as it covers the expenses like your child’s education, pay-off loans, or debts associated with a car or home during your lifetime.