Reasons why one must opt for a term plan

A robust financial planning has become an integral part of our lives with such an unpredictable life. Things might go topsy-turvy at any moment for anyone of us, and our loved ones might need to bear the hardship. Term plans are just the smart solution to cover the death risks while making things easier for your near-dear ones. 

Term plans have become popular over the years as they offer a few additional benefits that you cannot get with the traditional life insurance policies. Here are some of the reasons why one must buy it:

•        Easy to understand:

This simple type of life insurance is easiest to understand and have a straightforward structure. It is the oldest and the least expensive plan that covers the risk of death. Like your vehicle insurance or medi-claim, it is a no return scheme. In simple words, the nominee will get the full sum assured if the claim comes within the insured period, or otherwise, there is no cash value or maturity value of the plan. 

It offers coverage for a definite term or period like 10, 20 or 30 years. 

•        Cost-effective 

The premium for term insurance is very low as compared to that for cash value policies. Term policies are becoming a commodity at a fast pace in today’s competitive market as they can be easily compared with each other on the basis of price. Buyers have fewer information queries for term insurance, and this makes the term market modest as compared to cash value policies. 

Furthermore, they offer tax benefit. Even though the premium paid for the term insurance is small, it is eligible for tax benefit. 

•        Perfect plan for all

Ideally, a term plan is suited for persons who are the sole breadwinner of the family with high financial liabilities. In general, good insurable health, high financial obligations, moderate income and dependent spouse and children are a few factors triggering the choice of term insurance plan. Term insurance is also a better option to save costs for individuals on the threshold of new business venture or careers. 

You can buy a term policy online quickly. Online plans are gaining immense popularity, because of ease of access and it eliminates the need for any mediation of an agent with the insurance company.

In short, a wisely chosen term plan is a must have in your financial portfolio. It lets you reap the benefits of comprehensive protection with tax benefits at economical premiums

Remember, never think a term insurance plan premiums as an expense; rather you are eventually planning a feasible way to protect your near dear ones and that too at a small investment. Like all other insurance products, it is always advised to start planning at a young age to get the maximum benefits. It lets you avail the longer term coverage benefits like for 30 years at low premiums. So, what are you waiting for? Start planning now!