Factors to Consider About a Term Insurance
Buying a term insurance is indeed one of the wisest decisions one can make for the betterment of the family. The reason being is its ability to provide protection and financial support in case of an emergency. Accidents, health issues or any other catastrophes can occur at any point in time. When your family is hit with any such mishap, they need a reliable financial resource and a term insurance exactly does the same.
Though buying it is imperative and essential, choosing the one is a daunting task. As the market has ample term insurance plan options available for you, it becomes tough to pick one. Here is our list of few factors to consider before you go for a term insurance plan online.
- Pay attention to the sort of coverage it offers
Understanding the type of coverage offered by a term insurance plan beforehand is actually one of the most crucial factors to consider. Various plans provide different coverage. Not all are needed in your case. Investing in something which is not going to be used in future will lead to squandering away your hard-earned money. To prevent this, understanding of the coverage provided and coverage needed is a must before you buy a term insurance plan.
- The premium cost
You must pay attention to the cost of premium to be paid for your term insurance. The premium should be affordable, within your means and provide maximum output. Buying a term insurance with high premium would be a difficult thing to maintain throughout as our expenses have a tendency to decrease and increase exponentially.
- The duration
The duration of your term insurance plan is also an important factor to consider before buying it. It is advisable to buy life cover plan only if there are family members who depend on you for their needs.
- The history of your insurance provider
As a term insurance is a long commitment, it is very important to buy it from only reliable and trusted names.
How Does Term Insurance Help Us?
Term insurance plan is more than a financial support in case of an emergency. There are many ways via which it helps us. When you avail it, you get into the habit of saving a fixed amount for its premium. This way it helps us utilize our money in a wise manner and prevent any unnecessary expenses.
On the same note, with a term insurance plan, you can lead a peaceful life without fear of any future set back. When you have it, you are aware that you and your family can your easily handle any mishap. We all know that you can’t prevent mishaps but you can be prepared to deal with them and a term insurance plan exactly does the same.
Also, when you have a term insurance plan, you have a right to utilize it in other ways as well. There are some policies which allow you to take a loan against it. So, when you need some extra financial help, it will come in handy.
With a single term insurance plan, you can safeguard your entire family. There are various plans which provide all-inclusive coverage to all your family members. This way, you can protect them all in one go.
The Indispensable Benefits of Term Insurance
Owing a term insurance plan comes with a suite of benefits which can be stated as follows:
- Maximum output at low inputs: Term insurance is amongst those policies which provide maximum benefits at lower premium rates. It is more beneficial when bought online. If you buy it online then premium rates are usually 5-10% less than offline buying.
- It is easy to understand the policy: People have that notion that buying insurance is one of the most daunting tasks. But it is not true in case of buying online. It is also one of the easiest and hassle-free processes to safeguard your family.
- It provides some relaxation on your tax amount: When you have a term insurance plan, you will get some tax rebate. As per the Income Tax Act 1961, an insured will get a certain tax relaxation over the premium cost. Though availing tax benefit should not be the main motto to buy a plan, still, it is beneficial to some extent.
- A source of fixed income: When you buy term insurance, you are assured that your family is going to get a fixed sum in case of an emergency. The thought itself is very relaxing and releases many tensions.
- It gives you options to choose from: Once the term insurance is matured, you can either opt for a lump sum amount or go for monthly payments. This way you have the freedom to choose and utilize your savings as per your needs and requirements.