Why you should buy Term Insurance Plan?
You should buy term insurance plan to provide Protection and Financial security to your family in event of unexpected death. It is a basic and inexpensive form of coverage which gives all the security you need. It has different tenures for which you can buy a term insurance policy ranging from five years, 10 years, 20 years and so on. People can take the policy based on the amount of coverage which they want to take. If the insured person dies during the tenure of the policy, his immediate beneficiaries will get the Sum Assured amount. However, it is important to note that a Term Insurance plan doesn’t pay anything on maturity.
Significance of term plan
A term plan can be called the best form of insurance as it provides much-needed cover at a low premium. The customers need to pay a small fraction of amount as insurance premium compared to other insurance plans like endowment plan, ULIP, or Money back policy as those are saving plans while the later is not.
Tenure of term plan
Apart from the cover, the second element that needs attention is the tenure of term plan. It is always advisable to start early when it comes to insurance whether it is Term Insurance or any other insurance product because of the lower premium benefit which an individual gets when he starts early. It is always best to opt for a term plan that provides life cover till at least 75 years because of higher life expectancy. Any term policy which is taken during mid 30’s to mid 40’s usually cost bit higher compared to policies which are taken in Mid 20’s.