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6 Term insurance benefits that can really make a difference

A term insurance plan is necessary for an individual and his family. The sole purpose of term insurance is to provide life cover in the event something unfortunate happens to you. Apart from its purpose and its tax savings benefit, there are some term insurance benefits that make a term insurance plan an important part of your life.

Here are 6 term insurance benefits that are highlighted to showcase the significance of term insurance.

1. Family Security

As compared to the other term insurance benefits, the security cover for your family is what matters the most. If you are the only earning member of the family, a term life insurance plan should be an essential component of your financial investments. In a term life insurance, if something unfortunate happens to you, the coverage provided, will take of your family.

2. Simplicity

As compared to insurance plans, term life insurance is much easier to understand. Plans that come with risk covers and savings components might make things a little too complicated for investors, with all the rules and regulations involved around the cash savings and policy death benefit, along with the tracking required to check how much is going into savings versus how much is being diverted into premiums. A term plan is much simpler wherein you pay premiums and get a life cover in return.

3. High Sum assured

Money often translates to benefits in this world, and one of the term insurance benefits is the high sum assured amount. The sum assured that comes with a term insurance plan can be limitless. As long as you are eligible for the plan under its established norms, you may claim amounts as high as 50 lakhs or 1 crore. Just be careful to select the correct value of sum assured while opting for a plan.

4. Low Premiums

Low premiums also contribute to term insurance benefits. Since a term insurance plan does not deal with savings and other money-growing concepts, it allows you to pay nominal premiums and get high coverage amounts. Although the coverage amount may increase if you opt for higher premiums, it might still be less when compared to other types of insurance plans.

5. Security against Liabilities

Life may throw at you situations that come with the requirement of buying liabilities. A lot of these liabilities are usually paid over some time, for example, the repaying of a home loan or a car loan, in instalments. However, if something were to happen to you, the entire load would come on your family. In such cases, a term insurance plan will seem like a boon for your loved ones as it will help cover the remaining cost of the liabilities.

6. Flexibility

In comparison with cash value plans, opting out of a term life insurance is much easier. In term insurance policies, stoppage of the premium payment automatically ends the policy. Since no death is involved, nothing will be paid to you. However, in cash value policies, the amount is released only when held for the full tenure. If the payments stop in the middle, the money won’t be received back without deductions.

The term insurance benefits mentioned above are less about what the plan offers and more about why such plans are a must to opt for. Benefits like these are exactly what make a term insurance plan an important aspect of your future’s security.


About This Author


Shaheen ShaikhShaheen Shaikh
http://www.adrclinic.co.uk
Joined: April 29th, 2018
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