A lot of people feel that buying a term insurance is not a good idea. They feel that it is a waste of money, but in reality a term insurance may prove to be beneficial for the insurer’s nominees in case of their sad demise. We live in a country where in several households, there is a single person earning and feeding a family of four to five people. This also means that at least four other people are dependent on you for the daily bread and butter. Plus, if there are elderly people living in the family, they have medical expenses which need to be taken care of as well. Health insurances do not cover all medical costs and hence we cannot completely depend on them to take care of our or our parents’ medical expenses. This is where a term insurance plan comes in.
If you are looking for a way to secure your family financially, then buying a term insurance plan is definitely a good idea. A term insurance plan, as the name suggests covers the subscriber’s nominees for a certain term – maybe 10, 15 or 30 years. Depending on your financial responsibilities or long term goals like building a corpus for your child’s higher education, you may choose a term insurance plan that suits your timeframe. If you want to determine how many years’ worth of term insurance plan you want to buy, you can use an online term insurance calculator to give you some assistance on the same.
What are the different term insurance benefits?
There are several benefits for buying a term insurance plan, here are some of them.
- If you die during the term, a death benefit is offered in exchange to the monthly or annual premiums paid by the insurer. Yes, there are two options for paying the term insurance premiums. Depending on your financial condition, you may either choose to make monthly payments or pay the annual premium amount all at once.
- The money that comes from death benefit payout can be used to fulfill several financial needs, like monthly utility bills, your child’s school and tuition fees, your parents’ medical expenses or the monthly house rent.
- Term insurances generally offer a high sum in exchange for the premium paid. This may be considered quite affordable if you compare the premium amount and the assured sum.
- Investment or premiums paid towards a term insurance plan are eligible for tax benefits. Not just the premium, but the payouts received through the term insurance are also exempted from tax deductions.
Is it possible to pay low premium under term insurance plans?
A lot of people are under the pretext that premiums for term insurance plans are heavy on the pocket. But in reality, there aren’t. A lot of insurance companies are offering term insurance plans with a monthly premium as low as Rs. 500. Term insurance is one of the most affordable ways to secure your family’s financial requirements in your absence. A low premium means you can easily continue paying the monthly premium throughout your term without having to worry about burning a hole in your pocket.
Buying term insurance is easier than you think. There is no need of scanning documents or printing and filling offer documents like the old times. You can just apply for term insurance online and within no time you will be able to find out if you are eligible for one. So why wait when you can buy a term insurance from the comfort of your smartphone or your laptop?