Term insurance plans
Did you know that term plans can actually pay back?
Life and health insurance are two essential tools for survival today. We cannot predict the future, much less stop a tragedy from occurring. Hence, taking insurance when one does not need it is a wise move. With one’s future protected from future shocks, one can live peacefully.
However, most people simply take the first insurance policy they come across. Every insurance policy is different, and it provides different coverage and benefits. Not knowing what one has signed up for proves ineffectual. When an emergency takes place, one may not have enough insurance cover or may have the wrong kind of coverage – which means one has to pay for hospitalisation and treatment from one’s pocket.
A useful insurance policy comes in the form of term insurance. This plan provide high sum assured returns against low premiums. If cost of the premiums is a consideration for you, you must purchase term insurance plans.
The following are a few features:
- Low investment, high returns. As mentioned above, term insurance plans yield high returns against low premium payments. This makes them affordable to all, with huge benefits at a later stage.
- Term insurance plans yield benefit only on the unfortunate demise of the policy holder. Hence, they are terminated at this point.
- Term insurance can help safeguard your valuable assets from being liquidated in case the policy holder dies before repayment of loan. For example, if a policy holder has taken a home loan and term insurance, in the event of the person’s death, the insurance provider will pay off the outstanding loan amount. This saves the family from liability.
- Term insurance plans are bought for a period of 5, 10 and 20 years. The coverage is provided against risk of death.
- When buying a term plan, you can find out if the insurance provider returns the premiums paid against the term insurance. Traditional term insurance does not feature this benefit. When the policy holder dies, the term insurance benefits are passed on to the family members (who are beneficiaries of the policy).
- Taking term insurance at a younger age will result in you paying low premium. The older you are when you take, the higher the premiums will be.