Why Buy Term Insurance?

Term Life Insurance is like a safety cushioning for the beneficiaries or family members to fall on if something unfortunate happens to the policyholder.

Today, it is one of life’s primary necessities with all the uncertainties and difficulties. 

Term insurance stands tall for its simplicity and effectiveness in translating its promises into results. It gives you many attractive features and provides great benefits on maturity. To understand the importance of term insurance plans, you must know its benefits. 

Benefits of Term Insurance

• Cost-Effectiveness and Affordability:

One of the major benefits of term insurance is its low cost. Term insurance rates are significantly cheaper than those of other life insurance products, such as whole-life or endowment policies. This low cost makes it an appealing option, particularly for young people who have just begun their professions and want to buy life insurance without breaking the bank. 

To ensure that the plan is within your budget, you can check the policy premium online with the help of the term insurance premium calculator before buying it.

• Coverage: 

Term insurance provides a large coverage amount or sum assured at a low premium cost. This implies that policyholders can secure a big coverage amount for a low premium, offering financial security and peace of mind to their family in the tragic event of their death.

• Financial Protection for Beneficiaries:

A life insurance policy's principal goal is to offer financial security to the insured's family or dependents. The lump sum amount paid to the nominee) in the event of the policyholder's death ensures that they can maintain their lifestyle, pay off debts and school fees, and handle day-to-day living costs.

• Flexibility:

Term insurance programmes provide premium payment and policy term flexibility. Policyholders can select the frequency of premium payments (monthly, quarterly, or annually) based on their financial capacities. They can also choose an insurance term that corresponds to their specific needs, ranging from 10 to 40 years, assuring coverage during important life phases.

• Additional Riders for Better Protection:

Term insurance customers can supplement their coverage by adding riders to their main policy. Riders such as accidental death benefit, critical illness rider, premium waiver, and so on provide additional financial protection against specific risks, boosting the policy's overall utility.

• Ease of Purchase and Online Accessibility:

In the Indian market, term insurance contracts are widely available. Individuals may now evaluate various policies, calculate premiums, and purchase term insurance online from popular insurance companies. This ease of access and availability makes it easier to purchase life insurance.

Final Thoughts

For a country like India, term insurance can come first. We have people from various demographics, and satisfying every person’s needs can be challenging. But term insurance sure has reached closer to doing that. Considering all the advantages policyholders enjoy, term insurance sure is a prudent choice for one and all.

Frequently Asked Questions

1. Does Term Insurance Have Maturity Benefits?

A regular term insurance does not have maturity benefits. But if you want to avail maturity benefits, you can go for Return of Premium plans under Term Insurance. You can receive the premiums you have paid until the maturity date, subject to certain terms.

2. What is the Correct Age to Buy Term Insurance?

You should buy term insurance as early as possible. This is important because your age and your premium are related to each other. The younger you are at the time of policy purchase, the lower the premium is.