A term insurance plan is a pure life plan without the added benefits of savings or maturity benefits at the end of the policy term. It’s unlike an endowment plan; however, it offers incredible benefits that make it one of the best investments you can make. It may not be suitable for people who don’t have any dependents, but it’s the best plan you can get for your dependents as the benefits it offers are great with a low premium, making it an ideal plan that’s both inclusive and affordable.
If you have been having doubts about whether a term insurance plan is something you should invest in, we are here to clear any doubts that you may have, that should help you make up your mind.
What is a term insurance plan?
A term insurance plan is a life insurance plan that offers a lumpsum payout up to the sum assured in case of the untimely demise of the policyholder. So, in case someone opts for a 1 crore term insurance plan, and the policyholder passes away when the policy is in effect, then their family is entitled to that sum assured.
Benefits of a term insurance plan
A term insurance plan offers a ton of benefits at affordable premiums making it an ideal plan for anyone with dependents. Let’s have a look at a few of the most prominent benefits of the plan.
Sum Assured at lower premiums
In case you opt for the policy early on in your life, you can get a much higher sum assured at lower premiums compared to opting for a term policy later in life. You can opt for anywhere between a few lakhs to as high as 1 crore term insurance depending on your income, and the number of dependents you have.
Option to divide sum assured
One can have multiple nominees on the plan and can choose to divide the percentage of the sum assured each one gets in case of the untimely demise of the policyholder. This gives greater flexibility and control over the policy.
Critical Illness Cover
Some term insurance plans also offer critical illness cover. So, in case a policyholder gets diagnosed with a disease or condition from the listed conditions within the policy document, the policyholder can get an advance payout to take care of the medical expenses, and living expenses. This is a huge benefit since critical illnesses can take a long time to recover from, and the lump sum payout can help take care of the household expenses while the policyholder recovers.
Accidental Death Benefit
In case the policyholder passes away in an unfortunate accident while the policy is in effect, this particular rider pays off an additional amount on top of the existing sum assured to the nominees of the policyholder.
Accidental Disability benefit
Should the policyholder be rendered disabled due to an accident, this rider pays off a percentage of the sum assured as a disability benefit to the policyholder.
Waiver of Premium
In case the policyholder is no longer able to pay the premium due to a medical condition or loss of income, the remaining premiums are waived off while the policy continues.
Term insurance comes with a host of benefits that cannot be matched by any other life insurance policies. The lower premiums coupled with the benefits that it offers make it a plan that anyone who has dependents must opt for. So, if you had any doubts, we hope now you would be better able to make a decision.