Top 10 reasons why term life insurance plans are a must-have

January 11, 2019

reasons-why-term-life-insurance-plan

Term life insurance is undoubtedly the most affordable and one of the cheapest life insurance policies which can financially secure your family even in your absence. Implementation of new taxes on insurance policies have upsurged the premium prices, but still when compared; the term life insurance premiums are more budget friendly.

Here we will sight 10 reasons why investors prefer to choose term insurance plans-

Reason 1-

Term insurance plans are always cheap, and they fit easily within the budget. This is also a basic life insurance plan where the policyholder needs to pay a small premium amount and the company fixes a death benefit based on the premium paid. In lieu of just a nominal premium, it offers a huge death coverage.

Reason 2-

Term insurance plans include tax-free death benefit where the sum received by the nominee of the policy-holder is tax-free. The government does not levy tax on the assured sum as the taxes are already given while the premiums are paid. Though some instances may make the amount counted as taxable.

Reason 3-

Term insurance plans give you even higher benefits if you buy the insurance at an early age. The earlier you buy the insurance, the lower the premium you have pay.

Reason 4-

Term insurance helps you choose between short term life insurance and insurance for a longer term. Though some insurance companies offer term insurance till the age of 70-75, iProtect has the provision to opt for a cover till the age of 99.

Reason 5-

The premium amount paid for term life insurance are fixed and do not vary with time unless there are any changes in the tax laws.

Reason 6-

Term insurance plans also come with an additional accidental cover where if you choose a cover with accident benefit, the nominee is liable to get a higher assured sum.

Reason 7-

Term insurances like iProtect also help you get a cover in case of critical illness where you get a lump sum to fight with your critical illness even before your death and on the first diagnosis itself.

Reason 8-

Few insurance covers like iProtect Smart allow you to protect the assured amount from creditors and fraudsters through false claims. It ensures that the assured sum will be paid out to your nominee only, which can be your wife or children.

Reason 9-

You can very easily buy term insurance online by choosing between different types of term life insurance. You can always visit the company website of your choice and follow simple steps to opt for the best term life insurance that suits your requirements. Term plans that are bought online are comparatively cheaper than getting it from the agents.

Reason 10-

Once you agree to the terms and conditions of the insurance, you get into an agreement with the company where the company is liable to pay you the assured amount. But you can always change the policy type or drop the policy completely without being accountable for any penalty.

To conclude-

Term life insurance policies are easily available, and the policyholders are also capable of converting the existing policy to some other policy mentioned in the company’s list. Though there are restrictions regarding the conversion cost, time period or the converted amount, this insurance policy has a lot of perks as compared to any other insurance.

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