Term Insurance and Its Significance
The next time you are booking a ticket, observe the option to add insurance for the travel. No, we are not talking about flights, those insurances have been around for quite some time now. The next time you book tickets for bus or train. This is a precaution at the cost of some rupees which ensures that should anything unwanted take place during a journey, you shouldn’t be bothered by it.
If we can think so much about a journey, surely our life is more precious than a trip. Should you wish to add precaution for your life as well, a term insurance is what you need. A term insurance is the simplest insurance policy that your money can buy.
The policy is an agreement between an insurer and the insured. The insured must pay premiums on a regular basis and the insurer will offer cover for life for the insured. In simple words, should the policyholder lose his/her life during the term of the policy, the insurer will pay the sum assured to the nominees of the policy.
Unlike most other life insurance policies, a term insurance doesn’t have different components. Thus, the entire premium that you pay is utilized to offer cover for the policyholder. And should the policyholder outlive the policy, there are no financial benefits out of it.
A term insurance plan online is ideal for someone is the bread earner of the family. Because in their absence, the financials of the family might take a big financial hit. A term plan ensures that you need not to worry about such things.
The loved ones of the policyholder can use the proceeds of the fund to get on with their lives. If there are any outstanding debts such as a home loan or a car loan or a personal loan, the policy can take care of the same. And should you select a handsome sum assured, even after paying off these the family can continue living their life normally?
How to find the Best Term Insurance?
To help you find out the best term insurance, there are a few parameters which can be quite helpful. The following are some of them.
There are no second thoughts that the premium of a policy plays a crucial role in deciding whether or not to buy the same. A quick assessment of the premium quotes versus the features on offer can help you pick the right one.
The premium that you pay and the features on offer go hand in hand. A policy that offers more features at a similar price should definitely be on your shortlist. To be on the safe side, a policy that offers good features at affordable prices should be the best pick.
Since each one of us is wired differently, what we want from our policies might also differ. Riders or add-ons come in handy at such times. These are additional features that you can plug into a plan by paying some additional premium. A good insurer will offer you a wide range of riders to choose from.
The reliability of an insurer and their reputation in the market also is a crucial factor that one must not ignore. Look for the financial status and claim settlement ratio of the company, since a term insurance is usually for a longer period of time.
Lastly, comparing different term insurance plans on Coverfox.com is your best bet for getting the best term insurance plan. In comparison, you get to see the quotes from different insurers along with the features on offer. This way, you can pick up a policy that best fits your needs without paying much for the same.
What are the Benefits of Term Insurance?
Here are some of the benefits and features of a term insurance plan.
- It is a pocket-friendly plan that offers financial stability for the loved ones in the absence of a policyholder.
- Individuals who do not smoke or consume alcohol will enjoy a slightly lower premium.
- A lot of flexibility in terms of modes of paying the premium, the frequency of the premiums, policy period, sum assured etc.
- Most insurers offer a free 30 days look in the period, where you can cancel the policy if you do not like the same.
- A term insurance plan offers an incredibly high sum assured for relatively lower premiums.
- The premiums that you pay are tax deductible under Section 80C and the proceeds are non-taxable under Section 10(10D) of the Income Tax Act, 1961.
A term insurance plan, with its low premiums and high benefits, is capable of being the perfect addition to your financial portfolio.