Term insurance as the name suggests is a life insurance policy taken for a certain period or term in case of unfortunate death of the policyholder the some assured is paid to the beneficiary,
nothing is paid out to the policyholder if he or she survives the policy term which makes term insurance a pure life policy which can give you very high cover for very low premiums as compared to traditional life insurance policies.
Let us go through the benifit.
the first one we’ve already discussed it is the cheapest form of life insurance offering a high cover for a low premium since it is a pure life insurance plan it dose not make insurance with investment like other life insurance policies it enables you to buy an adequate amount of cover due to its affordability and help saves you from being underinsured before you actually buy a plan you should know what is the amount of cover you would need what you are ready on how to calculate right life insurance cover to know the same.
next benefit of term insurance is due to its low premium as compered to other insurance policies it frees up money for other better investment avenues as your other investments grow and you cover most of your goals with them your insurance needs come down with a cheap cover through term insurance in effect for a sizable duration you get a window to build your wealth, you can add rider like critical illness disability premium waiver etc to make your term insurance companies allow allow you to enhance your cover at various life stages like marriage, being a parents etc. Enabling you to start with a low cover and you can increase it as required. Premium paid towards term insurance can be claimed for tax deduction under the section 8 pc for a given year let us look at an example which will show how term insurance can offer a very high cover for a very low premium a cover of one crore can be bought online for a premium range of seven to twalve thousand rupees each here for the next 35 years for a male aged 30 years who is a non smoker online plans have lower premiums as they eliminate the middle man some other important points to know there no upper limit on the amount of cover you can buy but an amount you’re eligible for would depend upon your income. The early you buy a term plan the better it is because when you are young you are healthier and you can buy a term plan at a lower premium and if you delay buying to term plan with age you might contract lifestyle dieses diabetes etc which just pushes up your premium as these are considered pre exisiting aliments.
Friends with this post we’ve seen what is term insurance. If you seen its benefits and some other points to know about term insurance. Hope the post is useful and thanks to read this post.