Term Insurance plans are best for any individual who has dependent family members. It is the basic form of life insurance where the policyholder gets the sum assured in case of sudden death. If the policyholder survives the term, he or she will not get any types of benefit from the plan.
Getting term coverage is easy – There are online insurance providers, which provide quotes online free of cost. You can compare the insurance online on websites like Coverfox and get to know about the coverages provided by different plans from multiple top-notch life insurers.
Term coverage is for a limited period – Term insurances are available for a period of 20 to 40 years. There is another term insurance plans available for a period according to your choice. In case the policyholder survives the term, the policyholder will not receive the sum assured.
Good Planning tool – You can plan for term insurance as a temporary investment plan. In case the policyholder dies during the policy term, then his / her family gets the sum assured as financial support in absence of the income of the policy holder.
A term policy is inexpensive – Unlike other life insurance plans, term insurance plans are inexpensive and lot more affordable.. You can pay a less premium to protect your family when needed.
You get your term premium back – Many term insurance policies offer return on premiums. In this case, the policyholder gets the sum assured in case the policyholder survives the term.
Flexible – Some of the insurance providers give the policyholders an opportunity to switch term insurance plan to a whole insurance plan. In case the policyholder decides to switch between plans, it is allowed to do so.
Risks Covered By Term Life Insurance
Though term life insurance is for low premium payments, it provides a wide range of coverages. There are a few risks covered as below.
Lump sum amount for sudden death – Term insurance provides coverage for a term, In case the policyholder dies suddenly, a lump sum amount of sum assured is paid to the dependents of the policyholder.
Coverage for critical illness or disability – Term insurance also provides financial assistance for any sudden disability to the policyholder. The family will be supported through the money from the term insurance coverage plan.
Pay for loans and liabilities – If the policyholder is the only earning member of the family and suddenly the policyholder faces a sudden death, the family will be supported to pay for any existing loans and liability.
Financial security for family – Term insurance sum assured acts as a financial security for your family. Your family will be secured with a financial backup if the earning member dies suddenly.
Know Your Term Life Insurance
It is equally important to know your insurance plan when you enroll in an insurance policy. It is easy to know your policy if you know important features and exclusions of the life insurance plan.
Sum assured – You should know what you have chosen as the sum assured. The sum assured is the amount of money you are going to get when the policyholder dies. The sum assured also determines the amount of premium you are going to pay for the insurance plan.
Coverages you have taken – Based on the insurance plan, the coverages will vary. The coverages will determine the premium you are going to pay on a periodic basis. Unless you know the coverages you have taken, you will not be able to take advantage of it.
Flexibility to change your plan – Some of the life insurance plans offer you benefit to change the plan in case you want to change the term life insurance to whole life insurance plans.
Claim process – Knowing the claim process is an important part of enrolling in an insurance. If you are not around, your family should know to claim the insurance without any hassles. You should let your dependents know the process as well.
Exclusions – When you enroll yourself to an insurance plan, it is important that you know the exclusions along with the inclusions. Exclusions will help you know the insurance plan better. It will let you know in what situations you cannot take advantage of the coverages.
All these factors are important to know your insurance plan completely. Term Insurance is the best life insurance policy that protects the family/dependents in case of sudden loss of the bread winner in the family. Additionally, it is so affordable that you will never feel the pressure to pay for the premiums.