What is a Term Insurance Plan?
Term insurance plans fall into the category of life insurance plans. When a person opts for a term insurance plan, he/she has to pay some amount of money, either monthly or yearly to the insurance company. The insurance company, in turn, provides financial coverage to the policy holder’s beneficiaries in the unfortunate event of the policyholder’s demise.
Many Banks and NBFCs offer term insurance plans in India at competitive premiums. However, before opting for a term insurance plan, it is best to evaluate the term insurance plans offered by various providers to ensure that the right plan is chosen based on the specific needs and requirements of a person.
Why Obtain a Term Insurance?
Term insurance plans are one of the best ways to ensure that a person’s loved ones are able to maintain a certain standard of living and comfort in the unfortunate event of the insured individual’s demise.
Death is an unfortunate event that gives no prior warnings. Sudden demise of a bread earner can cause untold damage, suffering, and financial loss to the people left behind. Getting a term insurance policy is a commitment to a person’s near and dear ones, to ensure they will be provided for financially.
Benefits of Term Insurance
- The policy holder’s loved ones receive a lump sum payment in case the policyholder dies, which acts as an income.
- Term insurance can ensure that a person’s liabilities, loans, and financial responsibilities can be met, without causing a burden to the dependents.
- Term Insurance can help one plan ahead for milestones in the unforeseeable future.
- The death benefits help policy holder’s family maintain their standard of life without cutting corners.
- Term insurance plans can also be customized to offer financial coverage to the policyholder and beneficiaries in the event of a critical illness or disability.
- Many term insurance plans provide additional financial coverage in the event of accidental death.
- Term insurance plans offer excellent tax benefits, helping you save on taxes.
Buying Term Insurance Online
Many people opt to buy term insurance online owing to the lower costs and ease of comparing and browsing several options without leaving home. Opting for online term insurance options is beneficial as a person can get lower rates since some costs, such as those associated with having insurance agents.
Online Term Insurance Calculators
A term insurance calculator available for free on insurer websites is a useful tool to help with calculating the different components of a term insurance plan. Also called term insurance premium calculators, these tools are very useful when evaluating different term insurance plans to choose the best fit for one’s budget and needs. Term insurance calculators or term insurance premium calculators can help people evaluate various options when obtaining offline or online term insurance plans.
Term insurance plans are an essential investment for everyone owing to the mounting expenses, uncertainty and need to plan for the future. However, evaluating the right term insurance is vital for the most benefit. Thus one must make use of the many tools to help a person evaluate various term insurance plans being offered.