Life is a beautiful gift that should be savoured. However, death is inevitable and cannot be escaped. In a world where uncertainties abound at every crossroad, one has to think not just about oneself but about their loved ones too. An unfortunate event can occur at any point in life and leave the ones dependent on us helpless. However, you can ensure their well-being even after you are gone by taking the right decisions while you are alive.
Wondering how? The answer is simple – having the best term insurance plan!
What is a term insurance plan?
A term insurance plan is like a life jacket you can provide to secure the lives of your loved ones in your absence. It is a policy that aims to provide financial support to your family at the time of crisis. There is a range of life covers under term plans, each with specific benefits, premium payments and payout terms. Plans like POS Easy Bima Plan prove to be a blessing as the policies are not confined to only a certain number of people with high-income earnings but are custom-made based on your ability to pay the premium.
Why choose a term insurance plan over any other plans?
More affordable premiums
Among various premium plans, term insurance plans have the lowest premiums. This makes it accessible to a majority of people wanting to secure the lives of their loved ones.
Complete future financial security
Term plans offer a large amount of money at a very low cost. This provides a sense of security to your family if things go awry.
Affordable coverage
In comparison to most other plans, term plans cover a large variety of benefits without requiring you to empty your pockets.
There are no savings elements
Unlike most other plans, term plans have no necessary saving component. A benefit amount is paid only in case of death, and the value of maturity is usually null.
5 signs your term insurance plan offers the best possible benefits?
Selecting the best term insurance can be very confusing, as we come across multiple new policies and plans daily with different coverage options and benefits. How, in such a situation, can one decide which would be the best plan to go for? By looking out for these benefits in your plan!
Diverse payout options
Understandably, not everyone has an idea of potentially having to use a large amount of money handed to them in one go. Your family may or may not know the best investment strategies, which can lead to poor financial decisions and, ultimately, their loss. Only you know your family the best and not a policy provider.
Hence, it is advisable to look out for policies that have diverse payout options. For example, you can choose a payout option that guarantees to pay a lump sum amount to your family immediately after your death and a subsequent fixed amount every month. This way, you can ensure that you have a well-thought plan for the security of your loved ones.
Inclusive of disability and accidental death
Life can often be unpredictable. Accidents and injuries are one of the worst possible incidents one could face as they are not just physically exhausting but also financially draining for the entire household. The severity of such an incident may vary, and based on it; one needs to possess a considerable amount of money for compensating the lost income and the medical expenses that are incurred.
Hence, one needs to look out for the inclusion of disability and accidental death covers too, while making a wise decision regarding the best term insurance plans. Term life insurance plans like iSelect Star Term Plan aim to provide an option to boost the cover offered through inbuilt coverages. These include Permanent Disability Benefit, Accident Total Benefit, Child Support Benefit, and Death Benefit.
Critical illness covers
As much as death and illness seem to be a predictable nuisance in older age, one would never know when they can become a victim to critical illnesses at any point in life. Assuming that deteriorating health would only be a factor of the declining years could cost not just your health but also a large sum of monthly earnings that could be used for future savings.
Hence, a critical illness rider could save you from potential loss if you are diagnosed with a critical illness by providing a lump sum amount when needed. It serves the purpose of an umbrella that could save you from both rain and the sun.
Tax benefits
Term Insurance plans also enable you to avail tax benefits on the premiums that you pay and the benefits that you get. This can be received as per the laws prevailing in the taxation sector. Additionally, in some premium policies, one can also avail of additional tax benefits on critical illness covers. Look out for such benefits in your term insurance plan.
Riders
Selecting riders is the second step you have to follow after choosing to go for a term insurance plan. Riders help you maximize the benefits that you can reap with your term insurance plan by paying an additional premium. While they are not mandatory to choose from, opting for a few could prove to be advantageous. Such riders are tailor-made additions that could best help you in a situation of emergency, based on your needs.
With some thoughtful decisions, precision, research, strategic planning, a good understanding of what is a term insurance plan, and smart actions, you can protect your loved ones from bearing severe financial crunches that could otherwise become a part and parcel of their everyday lives. With a term insurance plan, you can keep your family financially afloat even after your demise without any hassle. The choices you make now define the future of your family. Think wisely and choose the best term insurance.
