We all wish for our prolonged lives. We do not wish to cause any harm to others or be harmed by them. When it comes to our families, we are even more protective. One of the ways in which we try to protect out families is by opting for a life insurance. This way, even if an incident takes place and we unfortunately lose our lives in the same, at least our families will be financially secure. However, in recent years, a new type of life insurance has come to fore. We know it as Term Insurance and you can read more about it here. This time around, we are here to tell you about some benefits of term insurance. Why? Just to pass some good information to you in a timely fashion.
Benefits of Term Insurance
Among the great benefits of a term insurance is its inexpensiveness. Since it not covering the full life term of the insured, it does not need to be expensive. Also, unless you opt for various riders (we will talk about these later), a term insurance policy only provides cover in case of the insured’s death.
In most cases, a term insurance does not entail any returns if you survive its term. If a term insurance is only going to cover your death and you are living and breathing healthy, why are there going to be returns? However, certain plans do offer this facility at a tad higher premium. These term insurance plans return all your premiums if you survive the duration of the policy. Who knew having an insurance and living through its term can be fruitful?
Conversion and Riders
One of the benefits of term insurance is that it can be converted into a regular life insurance plan. You can do so either during the term insurance plan’s duration or once it ends. After all, you cannot put a finger on your needs. Hence, the term insurance plan has to be flexible to your needs too. As far as riders are concerned, you can opt for add-ons such as critical illness cover and partial disability cover at an extra cost in your ongoing term insurance plan.
In the unfortunate case of your death, an insurance policy is meant to cover your family financially. In case of term insurance, the sum you can opt for is pretty good too. Moreover, in a term insurance policy, you can opt for how the family should receive the policy benefits. Unlike a regular insurance policy, in term insurance, your family can also get monthly payouts. Pretty useful, don’t you think?
Policy and Premium Payment Terms
One of the most crucial benefits of term insurance is that you don’t have to pay premium for your entire life. Instead, you can opt for a duration such as 15 years or 20 years, depending on what you deem fit. In case you wish to pay the entire premium at once, you can do that too. Or, you can opt to pay premium for a certain period of time. The policy stays intact for the intended duration. Just ensure to check the kind of term insurance you are opting for.
During the insurance term, you may feel the need to increase the sum assured by the policy. One instance of such cases is marriage. If you are the sole earning member in your family, the financial burden will increase. In such cases, you can opt for an increase in the sum assured by the policy. This varies between policies and companies. Hence, do a thorough check of all the policies and then opt for one.
A term insurance plan exists to accommodate your various needs. Such needs may arise before you buy a policy or after you have bought one. That said, a term insurance policy can be turned into something better than what you purchased in the past. Hence, weigh your current and future needs, be thorough in your research of various plans and compare them. Only then buy a term insurance plan.
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