term Insurance

Term insurance is a kind of life insurance that offers coverage for a given period or years, i.e., a term. It’s a type of life insurance that provides a financial benefit to the nominee in case of the hapless demise of the insured during the term of the policy. Term Insurance policies provide high life cover at lower premiums.

Why Should You Buy Term Insurance?

Term insurance is simple and is easy to understand. See below are reasons to buy term insurance:

  1. Low premium and offering large cover

The offered coverage by a term insurance policy can be very beneficial and the premium for such a cover would be managed. That’s why such a product should be the strong base of one’s financial portfolio as it offers wonderful protection.

  1. Financial dependents are safe

The main purpose of a term plan is to safeguard the financial dependents of the insured in the case of the latter’s unfortunate death. The demise benefit given by a term life insurance policy can be essential and enable financial dependents to afford livelihood-related expenses as well as fulfill their financial aims. So, a term insurance policy would offer immense peace of mind to the policyholder as the security of the financial dependents would be taken care of even in their absence.

  1. Insure your assets

In any case, unfortunately, if the primary income earner is absent Or something unfortunate has happened, financial dependents might be forced to sell assets to manage daily expenses. For instance: financial dependents may either have to sell the sweet home or investment portfolio to get funds. This could have a very bad impact on their long-term living safety. On either side, the death benefit provided by a term insurance plan can arrange substantial funds to manage daily expenses or for any other cause. Thus, assets that give tremendous value over the long term need not be liquefied.

  1. Riders

A term insurance policy can be packed with multiple riders. These riders are quite beneficial and can add to a term insurance policy by offering improved protection. Few of these riders add accelerated death benefit rider, waiver of premium rider, accidental death benefit, critical illness rider, etc. Adding these riders may pump up your premium slightly but the value that you would get out of them could be quite huge.


Here are some features of term insurance plans:

  1. Low entry age:-Term insurance plans have a minimum entry age of 18 years only. You can buy a term plan and secure your loved ones as soon as you reach adulthood
  2. Long-term protection: The term plan offers long policy tenures of up to 40 years that allow you to protect your family members for a long time
  3. Easy premium payment options: Term insurance plans offer flexible premium payment options like monthly, quarterly or yearly payment
  4. Liability protection: The sum assured of a term insurance plan can be used to ensure your family’s financial security and protect them from debt liabilities like a loan repayment
  5. Cover Against Critical Illnesses: Along with providing life cover, a new-age term plan also protects against critical illnesses. For a small additional premium, Critical Illness Cover provides lump sum payments when a critical illness like a heart attack, cancer, kidney failure, or any other critical illness is first diagnosed
  6. Tax Benefits: Term Insurance plans offer tax benefits on premiums paid. New-age Term Plans with critical illness coverage also offer additional tax benefits on premiums. You also get tax benefits subject to conditions under Section 10(10D) on the money that your family receives in case of an unfortunate event

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