Short Term Disability Insurance - Short term disability insurance is a type of insurance plan designed to compensate for the lost income due to a disability
Buy a term plan and secure your family
A term insurance plan is loaded with quite a number of benefits, let’s take a look at some of them.
It is easy to compare two or more term policies depending upon the price as they are similar in structure and are also comparatively easier to understand. This leads to a competitive market for the policies wherein they are turning into a commodity at a quick pace.
The policy buyers do not have to go through a lack of problems in the case of term insurance anymore. Hence, this makes the market for term insurance more price-competitive rather than for policies that have cash value.
As compared to cash value plans, the premium rates on a term plan are much lower. This makes the policy much more affordable and hence attractive for the buyers. Moreover, you can go for a premium payment on a monthly, quarterly, half-yearly, or annual basis. Some of the plans offer the option of simple-pay or limited pay too so that they can suit your pocket.
Term policies are way more easy to understand as opposed to other insurance policies like endowment plans that include risk cover along with savings. The plans that include a savings component, as well as risk cover, are also called cash value policies.
It may not easy for a layman to always divide the premium he has paid risk coverage and the amount that has been actually invested on their behalf in the form of savings. Planning financial objectives on the basis of savings.
Planning your financial objectives according to a cash value plan may get quite pretty complicated. For governing things such as the death benefit of the policy versus your cash value savings size and the policy loan repayment, and more. On the other hand, term insurance plan is simple- all you need to do is make payment of the premium and get coverage for the term you have selected.
Getting out of a term policy is simple as compared to opting out of policies that have a cash value. In case of term insurance, if you skip the payment of premium, the risk coverage ceases and your policy will come to an end. Nothing will be paid to you because the policy does not have a savings element.
However, the cash value policies will give you the promised survival benefit in case they are maintained for the whole duration of the policy. If you do not make payment of the premiums in the mid-term, you may face a financial loss because you won’t be able to recoup the savings part of your policy without some deductions.
Moreover, various term policies are convertible and renewable. The renewable plans make sure that you are able to go for another plan without having to go through a medical test at the end of your first policy. The convertible plan allows the conversion of a simple term plan into an endowment plan for the same coverage amount with rise in premium if it seems sensible within the policy term.
Simple evolution in the technology and the option of customizing the term plan makes buying it a matter of a few clicks. You can easily customize as well as purchase a term policy online from the comfort of your house, or any other place for that matter.
Although term policies do not provide coverage for health complications, there are many riders for term insurance that provide this coverage. You have the option of adding value to the coverage by applying these riders- disability cover, accidental death cover, income benefit cover, waiver of premium cover, critical illness cover, and more.
To Sum Up!
Getting coverage for your dependents in the form of term insurance is as important as meeting their other needs. The initial step for purchasing any term insurance plan is having a knowledge of their benefits, some of which are mentioned in this post.