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Offering life cover for a stipulated period of time, term insurance is one of the most pocket-friendly insurance plans available in the market. A term plan is one of the best ways in which we can financially secure our family’s future in case something terrible happens to us. Term policies are purely life insurance policies – they do not offer any investment options. Since you’re only paying the premium for life cover, and not for any investments, term insurance premiums are quite affordable.

Who Needs Term Insurance?

While generally everybody needs insurance, it’s important to think about why you’re purchasing a term policy. These insurance plans offer a high payout to the insured individual’s nominee in case something happens to them during the plan tenure. They don’t offer any kind of money-back policy at the end of the plan. Ideally, the plan serves as a financial safety net for family members who rely on you and the income you earn. If you’re single and don’t have any dependents, you may not need a term plan. Instead, you should look at other insurance options that also offer the added advantage of investment opportunities.

When Should I Buy Term Insurance?

As with all insurance plans, the younger you are, the more affordable the insurance policy is. While you’re young and in the pink of health, the premium you will be required to pay will be much lower than if you were in your mid- to late-forties and face a few health issues every now and again.

What Kind of Payout Should I Choose?

While a traditional term plan would only offer a lump sum payment to the nominee, several new plans in the market offer the insured individual the opportunity to choose the kind of payout they’d like their nominee to receive. If you’d like to somewhat replace the income that your family would have lost with your demise, you may want to opt for a staggered payout instead of a lump sum. This way, your nominee will be provided with monthly payments, helping them meet their day-to-day financial needs.

Should I Opt for Regular Premiums or a Single Premium?

If you choose a single premium set up, you will pay all your premiums for the term of the plan in one go. Let’s say you have a 20-year plan, and you’ve paid the premium for all 20 years together. If something happens to you in the 5th year, the premium you’ve paid for the next 15 years would already be paid, even though the payout will be provided to your nominee and the plan is terminated. Annual premiums, or a regular premium, on the other hand, allow you to pay a smaller premium every year. This might be the smarter option.

Where to Buy Term Insurance?

As we march further into the digital era, more and more people are opting to buy term insurance online. You can scope out various plans from the comfort of your home, and in most cases, you won’t even have to complete a medical before you buy a term plan online. If you’re looking to protect your family financially, click to find a term plan that suits your needs.

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