No matter what stage of life you are in, it is always a good idea to have term insurance. It is one of the most affordable and comprehensive types of insurance available, and it can provide peace of mind in knowing that you and your loved ones are financially protected in the event of your death. As the name suggests, term life insurance provides coverage for a set period, typically 10-30 years. If the policyholder dies during the policy’s term, their beneficiaries will receive a death benefit.
Here are the top 5 reasons why you should consider buying term life insurance
- Term life insurance is one of the simplest and most popular life insurance options available. Since it does not build up cash value, no complex investment strategies are involved.
- It is an affordable way to get coverage. Term life insurance is one of the most affordable types of insurance available, and it can be a great way to get the coverage you need without breaking the bank.
- It can help your family maintain their standard of living. If you are the primary breadwinner in your family, your death could have a severe financial impact on your loved ones. Term life insurance can help your family maintain their standard of living in the event of your death. The death benefit can pay off debts, cover hospital expenses, or simply help your family maintain their current lifestyle.
- Term plans cover more than “traditional” plans, so you can rest easy knowing that if something happens to you, your family will be taken care of financially. In a traditional plan, the coverage is only 7–10% of the annual premium. So if you pay Rs. 30,000 per year, your coverage is only Rs. 3 lakh, which is barely enough to cover your family’s costs for a few months. On the other hand, a term plan has a much higher sum assured, so your loved ones will have enough money to get by until they can get back on their feet.
- When you purchase a term insurance plan, you are locked into the premium you will pay for the plan’s duration. This means that if you start your term plan at a younger age when premiums are lower, you will benefit from locked-in rates for the life of the plan. This can be a considerable advantage, as premiums tend to increase with age.
How to choose the right term insurance plan?
Choosing the proper term insurance plan is one of the most important financial decisions. There are a lot of factors to consider before making your choice, but if you keep a few key things in mind, you’ll be on your way to finding the best policy for you.
One of the most critical considerations is premium evaluation. You want to ensure that you get the best value for your money. There are many ways to compare premiums, so take your time and shop around including shopping at sites like policybazaar.com and coverfox.com
Another important consideration is claims settlement history. You want to ensure that the company you are considering has a good track record of settling claims. The claim settlement ratio is a way to compare how many an insurance company has settled in a given year against how many claims it has received, including claims from the previous year that are still open. IRDAI published the claim settlement ratio reports on regular basis, so make sure to use that data before finalising your term life insurance provider.
Conclusion
Term life insurance is one of the most popular and simplest life insurance options available. It is affordable and can help your family maintain their standard of living in the event of your death. When choosing a term life insurance policy, be sure to compare premiums and claims settlement history to get the best value for your money.
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