Term insurance is the most affordable life insurance plan that we all know. But, going beyond its identity of the simplest insurance plan, have you ever emphasised on the benefits it offers to the policyholder or his family? If not, you must read this article one to understand what are five benefits that you can avail by purchasing term insurance.
Significant Death Benefits
As we know, term insurance policies are designed only to provide death benefits, and no maturity benefit is offered. Thus, insurance companies provide very high amount as death benefits to the nominees in case of unfortunate death of the life insured. When compared to the premiums you pay, you can easily get life coverage of Rs.1 Cr at just the premium amount of around Rs.600 per month. Other cash-value policies don’t offer such massive coverage.
Policy Term as per Your Needs
Term insurance is known for the limited period life coverage, but unlike other life insurance policies, term plans offer you a wide range of policy tenures. In most cases, you can choose it from five years to 30 years, at the interval of 5.
No Medical Examinations
When purchasing any life insurance, the insurer asks you to undergo before issuing your policy. It mostly includes several medical tests based on which the insurer decides whether to issue a policy or not, and even the premium amount is also determined through the reports of the medical test.
Tax Benefits
Term insurance, like other life insurance policies, provides tax benefits on the premiums you pay as well as on the death benefits in case of any unfortunate event, under section 80C and section 10(10D) respectively.
Guaranteed Death Benefits
Claim Settlement Ratio of term plans is the highest when compared to other policies. In short, by misfortune, if the life insured meets any uncertainty, death benefits are immediately paid to the nominees as soon as the claim is made. As per IRDAI mandate, insurers are obliged to pay the benefits without any delay.
To conclude, term insurance is always beneficial for everyone. A life insurance plan which comes at the possibly lowest cost and gives the maximum amount as death benefits that you would have never thought of. Be it anything, a youngster on the threshold of his life and career, or a sole breadwinner who is stable in his career, term plan makes it a perfect choice.