Term insurance is a type of life insurance plan in which you pay the premium for a fixed stretch of time, during which the death benefits will be paid to your beneficiaries in case of unexpected death. As a result, term insurance policies are often known as pure life insurance plans, wherein you collect a large sum of assured money by paying a minimal premium for a given tenure.
Reasons to Buy the Best Term Insurance Plan
A list of the major reasons for you to buy the best term insurance plan is given below:
· Low Premium
The premium for term plans is pretty low as there is no investment component in this insurance plan. You would be required to dedicate less than one per cent of your annual income to get a life cover.
· Offers Financial Security
Investing in a term plan offers financial security to your beneficiaries, in case of your untimely passing away.
· High Flexibility
Term plans are pretty flexible – you can customise the plan according to your needs and can even change the plans at a later date.
· Low Claim Rejection
The best term insurance plans in 2018 are the ones in which the claim rejection possibility is very low. One of the best ways to lower the claim rejection chances is to be accurate and truthful about your health condition, finances, habits, etc.
· No Brokerage
Usually, brokerage fee is the recurrent expenditure that is cited under the premium provision amount. This means that for every premium you pay, a certain fraction of that sum is allotted towards the brokerage charges, which keeps on reducing slowly over time. Typically, it accounts for about 5-6 per cent of the entire premium sum. However, on buying a term plan online, generally, no brokerage charges are applied at all.
Riders are the supplementary and optional benefits that you can add with your term plans. These come for a nominal fee and should be bought only if they are necessary and required for your nominees. Some common riders are critical illness rider, death due to accidents rider, partial or permanent disability rider, etc.
Benefits of Buying the Best Term Insurance Plan
Some of the various advantages of buying the best term insurance plans are the following features:
A term insurance plan is the simplest type of life insurance you can buy that also offers you a return of premium. Also, term plans have no investment element. These are the reasons why term plans are cheap as compared to other categories of life insurance policies. In this, you are only obligated to pay a monthly premium as per your affordability and your insurance establishment fixes a death benefit sum dependent on your premium.
· Tax Benefit
Term insurance policies offer numerous tax-free death benefits to you, as well as your subsequent beneficiaries. The premiums that you pay already have the tax levied on it according to the guidelines. Consequently, your beneficiaries … Read the rest ...