Term insurance is an excellent form of life insurance. It is very affordable and that is one of the main reasons why so many people opt for it. Take a look at this article to know all about term insurance, its features and its benefits.
What is term insurance?
Term insurance is a form of life insurance where you can get coverage for your life for a fixed period of time at a very low cost. Term insurance usually offers a pure life cover without any return component. If you die before the policy comes to an end, your nominee gets the sum assured. If you outlive the policy period, the policy terminates without offering you a maturity benefit. For this reason, a term insurance plan is much less expensive than the other forms of life insurance that usually offer a return component.
How to buy term insurance?
Term insurance plans can easily be purchased online. Online life insurance is very trendy these days with practically every life insurance company having a strong online presence. Just visit the website of your trusted life insurance company, enter your retirements and find the best plan. Pay the premium and the plan will instantly be issued to you. Of course, this can only happen if you are young and do not have any serious health conditions. Otherwise, the insurance provider will put you under a medical evaluation and then issue the plan to you.
Pure life cover – As stated, a term life insurance plan has a pure life cover. You get plain-vanilla life insurance coverage when you opt for term insurance without any frills or fancy accessories.
Available in different forms – Term insurance is available in different forms. Some of them are:
TROP – Term Insurance with Return of Premium, or TROP, is a type of term insurance where you get the premium you paid over the years back if you outlive the policy period. A TROP is usually more expensive than a regular term plan.
Increasing term insurance – Here, the sum assured increases as the policy progresses along. The premium remains the same, but the coverage amount keeps rising.
Decreasing term insurance – Here, the sum assured decreases as the policy progresses. A decreasing term insurance plan is ideal for those who buy term insurance to cover loans and other debts.
Level term insurance – Level term insurance is a type of term insurance where the coverage amount remains steady all through the policy period.
Riders available – There are various riders available with term insurance, which makes it possible for you to customise the plan as per your needs.
What are the benefits of term insurance?
- Low cost
One of the biggest benefits of term insurance is that it is very affordable. Term insurance is so inexpensive mainly because it doesn’t have a return component and only offers a life cover. You can therefore get a substantial life cover by paying a small premium, which works very well for people from all walks of life.
- High coverage
You can get a term plan for a high coverage amount. If you are looking for a 1 crore term insurance, you can find many options. Hence, do your research and find the best policy with the best and most comprehensive coverage without any further delay.
- Flexible
The term plans are quite flexible. From being able to pay the premium at your own convenience (yearly, bi-yearly or quarterly) to being able to choose the type of payout your family would need, several flexible features make term insurance a very good type of life insurance.
- Tax benefit
Last but not least, you get an annual tax benefit of up to INR 1.5 lakhs for the premium you pay towards your term life insurance plan. This is an excellent benefit that allows you to save a lot of your hard-earned money in a safe and legitimate manner.
Conclusion
Term insurance is a vital form of life insurance that everyone should look to buy. Whether you are a fresher starting at the threshold of your career or you are a middle-aged processional with dependent children, a term plan can be of great use to you. Fortunately, there are many good term plans available in India. Choose the most suitable one for yourself and stay covered easily and affordably.
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