You earn throughout your life to secure your and family’s future and you know well how difficult it is to be stress-free regarding the financial matter. Now if you are assured of the benefits of term insurance which offers financial coverage for a certain amount of time at a specific rate.
Focusing on the definition of term insurance online, it can be said that this type of insurance policy gets you coverage for a specific period. This refers to the context that at the demise of the insured, he/she can get paid the money for a sum assured. However, it is to keep in mind, the insured may not pay the death benefit if he/she lives throughout the policy tenure.
Why Do You Need a Term Insurance?
If you need an ultimate level of cover on life, there is no better option than enjoying term insurance benefits. There might be no profit component or savings, the affordable plans are great for every policyholder who chooses to ensure security throughout life only by paying a lower amount of premium. For an instance, you can see that if your yearly income is Rs. 10 lakh, there is a high chance of taking coverage around Rs. 1 crore.
- The employers can make use of the policy for offering life cover to the employees.
- In order to minimise future insurability, the policy can be helpful on a large scale.
- It can further work as an endowment scheme and ensure an utmost level of security to the family.
Without a doubt, it is an essential financial plan that works finely as a saving scheme and can make you stress-free when you wonder what you are going to do if you lose your life.
Advantages of Purchasing Term Insurance
After acquiring basic knowledge of the term insurance for senior citizens, you should look further to its benefits that can protect your life in a more convenient way. The first and foremost advantage that you get from it is that the term insurance acts like purchasing money for your loved one. The amount comes handy after your demise and you can assure them to live a better way.
- Through term insurance policy, the funeral expense can be taken care of. If you have to pay a mortgage when you are no longer, the death benefit can help your family there.
- Acting as an asset to your children, your family is guaranteed to have food on table, complete education and wear clothes every time. Hence, in a simplified manner, it can be said that the inexpensive term insurance can ensure that all the basic necessities of your family are fulfilled.
- The policy offers the amount of death benefit for a certain period which means the insured can purchase it for one year, five years, fifteen years or twenty-five years.
- Flexibility is one of the prime benefits that you get after paying for term insurance premiums. When you stop paying the premium, the term of policy ends there.
- From the policy, you can get to convert policy within a certain period of time. For an instance, you can choose to convert twenty-year term policy within fourteen or fifteen years.
Disadvantages of Term Insurance
By getting the term insurance quotes, you can get the idea of how low the premium amount can go. However, there are certain drawbacks and limitations that you must know before getting the policy.
- One can choose to use the term insurance calculator for getting to know the premium amount. However, there is no way of calculating for how long one is going to need the insurance.
- It can be problematic for you when you will see the premium amount of term insurance to increase over the course of time.
- When you reach the age mark of 65 or 70, it becomes difficult for everyone as there are several companies who are reluctant to offer the benefits beyond this age group.
- As there is no profit plan, the term insurance in India is unable to offer a safeguard against inflation. Additionally, there is no chance of expanding your figure of wealth through the policy even if you choose term insurance compare.
- While living you cannot use term insurance as your family’s income or help your child to get an education.
Assessing all the aspects of the insurance policy, you should focus on how to make use of the policy. People with a tight budget can always choose this policy because there are various cash insurance policies that cost too much. Even it is great for people if they have taken a car or home loan, the policy can help your family to pay for it after your death. Henceforth, you can understand what an important policy plays in your and your loved one’s lives.