Top Six Key Features of Term Insurance

Life is uncertain, and anything can happen at any time. Diseases, accidents, and death can put a serious emotional dent in the life of an individual and family. Unfortunately, if you are the only person who takes the entire financial responsibility of your loved ones, then your loss can double the strain of financial and emotional responsibility. Nowadays, there are various types of insurance policies available in the market. Term insurance plans are quite popular, and today we will discuss the six main features of a term insurance plan.

What is Term Insurance?

Term insurance, otherwise called the purest form of life insurance, offers a large cover at a comparatively low premium rate. The amount of cover is paid to the nominee of the insurer if the insured person dies during the term of the policy.

Here’s why you should go for term insurance plans in 2021.

1. Term Insurance is quite affordable:

If we compare term insurance policy plans and premium with any other insurance policy, then term insurance plan looks quite affordable. Due to affordability, people of diverse earnings showcase interest in term insurance policies. Most of the term insurance plans cover family financial security in case of the insured person's death. Apart from being the purest form of insurance, term insurance is also the cheapest on the list. Purchasing a term insurance plan is one of the best ways to safeguard your family under a financial bubble.

2. Easy To Access:

Apart from being affordable, term insurance is also quite easily available in the market. Buying term insurance plans online is like shopping for your favorite smartphone or books. There are hundreds of options available on the internet, and as the policy is simple, you don’t have to be stressed while shopping.

3. Flexible Payment:

One of the prominent reasons people select term insurance plans is that they decide when they can pay the premium. The decision lies in your hand whether to go with an annual, quarterly, or semi-annual plan. One can select the plan depending on their financial capability.

4. No Capital Proliferation:

If you are selecting term insurance plans, you will have to clarify that you are not building capital here. You will only be compensated after death. If your policy is matured, then you will be left with zero capital. You have to pay a premium only for the death benefit.

5. Pay Premium Until You Retire:

You might have heard about a term insurance plan which offers coverage till age 85, where you have to pay a premium till 65 years or till your retirement. If you have a government job or you are working in a private firm, this policy is the best you can afford. You have to pay till you can earn, and then you reap the benefits.

6. Temporary Coverage:

The majority of term insurance policies come with lowered premiums and offer coverage for 30 years. Therefore you have to ensure that you select the right policy after discussing it with your insurance agent.

Select Wisely, and well.