Last updated on July 26, 2019
Term Life Insurance Policy is the best option to keep your families happiness on. Yes, If you have a number of financial commitments like children’s education, house construction, etc a Term Life Insurance Policy is the best option to go for.
We are living in a world built-in by different kinds of dreams. No doubt money is the criteria to fulfill these dreams. But unfortunately, the sudden demise of the family’s earning member put all those dreams in vain.
Do you think your family would be able to repay your outstanding home loan? Surely this question will scare you even for a minute.
Yes, but you need not worry, here is an option to overcome this dilemma. Go for a Term Life insurance to prevent your family from feeling the burden of repayment of financial liabilities in your absence.
Term Life Insurance What Is It?
It is the most affordable type of life insurance as it provides a tax-free lump sum money for financial security which lasts for fixed years. It is nothing but an, insurance policy which pays a death benefit to your beneficiary.
That is to say, the policyholder pays the premiums regularly and if the policyholder dies within the policy’s term. Or otherwise, it does not have any money value. Here, in this case, a part of the premiums for permanent life insurance go towards building the cash account.
In short, the phrase Term Life Insurance is also known as Pure Life Insurance that means it guarantees payment of a state of a death benefit during the stipulated time period. Here the policyholder can either renew for one more term or can convert to permanent coverage or can be terminate.
Is It Worth Joining In Term Life Insurance?
Yes, indeed it is worth buying or opts for it as it is the cheaper one than any other permanent Life Insurance policies.
In reality, the older you get the cost-effectiveness of any insurance is going to cost more. But if you go for Term Life Insurance when you are young and healthy, the monthly premium you pay will cost a smaller amount.
Few Reasons To Buy Term Life Insurance
The number one reason is Term Life Insurance (TLI) policy returns a high-value insurance amount at an affordable premium as low as Rs. 490/month for a cover of Rs. 1 Crore.
TLI also covers critical illness like heart attack, cancer, kidney failure, etc.
Your immediate family members get a larger payout in case of your untimely death in an accident.
TLI also provides Tax Benefits on the premium paid under Section 80C.
Help in case of disability: In case of permanent disability due to an accident, the company waives your future premiums.
TLI is easy to understand the insurance policy. You can reduce the cost by buying needed coverage instead for the rest of your life.
As the premiums are low comparing the permanent if you want to abandon in between before the term period you will not lose much money as in the case of a permanent policy.
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