What is Term Insurance and Why Is It Important?

“75% of Indian households do not have any insurance plans.”

You cannot predict what happens to your health and your life, but you can keep it secure and covered. It is imperative to look for a contingency plan for yourself and your family and mitigate the financial risks that follow it. You need to prioritize the financial planning that will help you tackle the unforeseen financial situations. One of the ideal practices that everyone needs to follow is taking the best term insurance and life insurance.

Term Insurance

What is Term Insurance?

It is a part of life insurance that only provides coverage for a particular period. For instance, you have taken term insurance for 60 years of his/her life, but they die before that, then the insurer would have to pay the amount to the nominee mentioned in the plan. But, when the insured survives after the maturity period, the policy will cease to exist. It is crucial to find the best term plan that suits your requirements.

Here’s why you need to take term insurance-:

Minimal Cost Coverage

Term insurance plans in the country are made with the focus on the middle and lower-middle classes, which can easily afford the plans. Terms insurance is by far the most budget-friendly insurance plans available. As they are relatively cheaper than other insurance products, you can cover your interests at a minimal cost.

Better Financial Security

The primary aim of term insurance is to cover financial dependency. At a minimal cost, you can cover the financial obligations that your family might have to face in your absence. Terms insurance plans are meant for a specific period, and if anything happens to you before maturity, your family will be able to get the claim.

All-Encompassing Coverage

Though terms insurance is similar to life insurance, it can also be modified into functioning like health insurance. Many insurance providers give you the feature of adjusting your insurance with some additional premium. You can cover critical illnesses, disability, and accidental death in the insurance plan to get better coverage in your term plan.

Fixed Premium

The primary function of term insurance is to safeguard the insured’s financial interests when they are not around. The sum insured or the premium paid is not dependent on the market, so you can expect stable products. The premium amount will remain the same through the tenure after you take up a term insurance plan from a reliable company.

Flexible Plan

Every family’s financial requirements are different, and that calls out for the need for a flexible insurance plan. Term insurance is the ideal solution for those who are looking for customizable payout options. While some need monthly income, others might require a lump sum amount. At the time of insurance, you can choose the payout option according to your needs.

There are numerous benefits of getting term insurance now. All you need is to find the right company or insurance provider who can provide you the best term insurance.

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