Individuals take life insurance so that their dependents do not face any financial problems after their death. Premiums are paid on an annual basis and in the event of death, the sum insured is given to the dependents. Term insurance policy is the most basic form of life insurance which is considered an economical option. Let’s talk about its features and importance:
What is term insurance ?
A beneficial type of life cover, term insurance provides higher cover at low premiums when taken at an early age. The policy can be taken for a minimum period of 5 years. You can choose to pay premium annually, half-yearly, quarterly or even monthly. Term insurance provides coverage for a fixed duration. If anything happens to the policyholder in this period, claim is paid to the nominee. The amount can be given in lump sum or a certain amount can be paid monthly as per the family’s requirements. Thus, term insurance effectively takes care of all your liabilities and provides financial support to your family especially if you are the sole breadwinner.
When should I buy this policy ?
Although the minimum entry age for term insurance is 18 years, it is certainly too early. However, it is recommended that you take this cover in your mid 20s when one generally starts earning. Don’t wait too long because premiums increase as you get older. So the more you postpone, the more costly it becomes to obtain term insurance. Start with a small cover which is in line with your present income and gradually take more plans. Assess your policy once every 4-5 years to determine if you need a higher sum insured.
Are term plans available online ?
The answer is yes and in fact it is the best way to buy term insurance. There are various advantages of taking this policy online such as quick processing, complete transparency and reduced paperwork. Most importantly, you can analyse plans offered by different companies and select the one best-suited for you.
Term insurance has gained popularity among individuals wishing to secure financial stability for their families. It has been massively advertised by insurance firms and some have dropped premium amounts too making it the right time to take this policy. Have a detailed discussion with your financial planner and register for this policy in order to ensure your family has adequate funds to look after themselves in future.
What is term insurance ?
A beneficial type of life cover, term insurance provides higher cover at low premiums when taken at an early age. The policy can be taken for a minimum period of 5 years. You can choose to pay premium annually, half-yearly, quarterly or even monthly. Term insurance provides coverage for a fixed duration. If anything happens to the policyholder in this period, claim is paid to the nominee. The amount can be given in lump sum or a certain amount can be paid monthly as per the family’s requirements. Thus, term insurance effectively takes care of all your liabilities and provides financial support to your family especially if you are the sole breadwinner.
When should I buy this policy ?
Although the minimum entry age for term insurance is 18 years, it is certainly too early. However, it is recommended that you take this cover in your mid 20s when one generally starts earning. Don’t wait too long because premiums increase as you get older. So the more you postpone, the more costly it becomes to obtain term insurance. Start with a small cover which is in line with your present income and gradually take more plans. Assess your policy once every 4-5 years to determine if you need a higher sum insured.
Are term plans available online ?
The answer is yes and in fact it is the best way to buy term insurance. There are various advantages of taking this policy online such as quick processing, complete transparency and reduced paperwork. Most importantly, you can analyse plans offered by different companies and select the one best-suited for you.
Term insurance has gained popularity among individuals wishing to secure financial stability for their families. It has been massively advertised by insurance firms and some have dropped premium amounts too making it the right time to take this policy. Have a detailed discussion with your financial planner and register for this policy in order to ensure your family has adequate funds to look after themselves in future.
