Term insurance is an agreement between two parties i.e. insured and insurer under which insurer agrees to compensate insured in any eventuality. Under this agreement, insured pays insurance premium to the insurer and in turn insurance company agrees to cover risks associated with life. Term plans are purest form of life insurance as it does not build any cash value and maturity benefits. Term insurance plans can be taken by an individual in order to secure future of the family. Several tenure options are available to an individual such as 5, 10, 15 or 20 years. Some life insurance companies permit the owners of term life policies to recommence their policies after the original term period. But the return of premium for term life insurance increases with increase in age thus it is important to buy term life insurance cover at the earliest in your life.
Term insurance plans provides several benefits to an individual thus helping an individual to secure their families future. Term insurance plans are much cheaper than any other form of life insurance. Whole life insurance plans and unit linked insurance plans are much more confusing and complex than term life insurance plans. An individual can compare term life insurance plans with other forms of insurance in order to reap maximum benefit out of an insurance policy. An individual can compare term life insurance in order to understand intricacies of insurance as well. Understanding insurance is very important as it helps while making claims and to know what is covered under various clauses. Term life insurance plan also provides option to an individual to convert it into whole life insurance plan thus ensuring you keeping insurance for whole life.
Term life insurance can be bought through several sources such as online and offline. Offline term insurance plans can be bought via direct agents which is also known as traditional channel of buying life insurance. Term plans can also be bought online via insurance aggregators and preferred provider websites. Online term insurance plans is easily the most convenient method to buy term life insurance cover. Moreover, online term insurance plans are cheaper as compared to offline term insurance plans as there is no involvement of middlemen. You are not required to submit any documents while applying for an online term insurance plan which is the reason why this mode is preferred these days.Online term insurance plans are very easy to manage as you can keep your documents on your system with minimal paperwork involved.