Buy a term plan and secure your family
However, finding the different life insurance policies in the market leaves him confused. Since the majority of the insurance policies have high premiums that are out of his budget. Plus, several life insurance policy types, different bonuses, policy coverage, premium payment options, and some other terms and conditions leave him quite confused. Thus, he ends up dropping the plan of buying an insurance policy, leaving him and his loved ones unprotected without the essential life cover.
Well, Faisal is not alone. There are many people like him who find it quite difficult to opt for the right life insurance policy as per their needs. Here, in this article, we introduce you to one of the best and highly effective life insurance policies that are suitable for almost all people and it is none other term insurance.
So, let’s learn the basic things about term insurance that every beginner must know.
Term insurance is a type of life insurance policy that offers a high sum assured with minimal insurance premiums. It offers policyholder a complete peace of mind, knowing that their loved ones are financially protected even after their death.
The insured pays a specific premium amount at regular intervals i.e. annually, half-yearly, quarterly, and monthly. If the insured dies prematurely during the tenure of the policy then the nominee (s) gets the lump sum amount by the insurance company. There are no maturity benefits. Meaning that, if the policyholder outlives the policy tenure, there are no benefits will be given. That is why, it is also referred to as a pure life cover.
Term life insurance policies are easy to understand and they are quite affordable.
The working of a term life insurance plan is very simple and easy to understand. The insured pays some specific amount of premiums to the insurance company during the premium payment term that is generally up to sixty years. Please note that the policy coverage is provided for the duration of the tenure of the policy that is predetermined.
If the insured dies prematurely during the policy term, the insurance company pays the pre-determined sum assured as a death benefit to the nominees. However, if the policyholder survives the term of the policy then no maturity benefits are paid.
In a nutshell, the insurance company pays the sum assured only on the sudden demise of the insured.
There are several reasons for choosing a term plan and here are the top ones:
Now you must have learned what is term insurance plan and what are its key benefits through this article. So, if you are building a family i.e. getting married or planning to have children then term life insurance is an ideal option for you without any doubt. It will protect your loved ones financially even when you’re not around thereby helping them to meet their financial needs in a stress-free manner.