A term insurance plan is a type of life insurance product that provides financial protection to you and your family. In case of your unfortunate death or during any critical illness, this plan will help your loved ones. Also, buying a term insurance plan makes you eligible for several benefits.Read more
Among all other benefits, one of the important benefits is the flexibility of premium payment and the policy term that a person receives. Insurance providers have now started to offer more customized options to meet the needs of the customers. You can easily choose the plan based on your needs concerning the policy term, sum assured, and premium payment mode.
Generally, many individuals prefer not to extend their term of paying premiums after 60 years. Because they don’t want to pay any premiums or have any liabilities in their retirement time so that they can comfortably sit back and relax. One should also compare term plans to choose the right plan for yourself and your loved ones. Here are the reasons why paying premiums for term insurance till 60 years is a smart financial decision:
Here are the number of benefits to pay premium till 60 years of age:
Making payments of term insurance premiums is easier when you have a fixed source of income in the working years. While the retirement age is being increased and people are extending their work-life usually to 60 years, that is when most of the working professionals choose to get retire.
After retirement, your monthly spending budget gets revised and you have to cut down on additional expenses. However, when you are earning, you can easily keep a fixed amount aside for paying the term plan premium. So, it is always good to get rid of all the term insurance premium payments at the right age such that it doesn’t feel like a burden.
People choose to buy term life insurance plans to have a regular source of income without any uncertainties and financial dependencies. And, if you will have to pay premiums then, it will be a burden.
Hence, to live a stress-free retirement life, it is important to be free of all the financial burdens before reaching 60 years. After which, you can live a comfortable life.
One of the main reasons to buy term plan is to protect the life of your dependents if something unforeseen happens to you as the sole earner of the family. In the starting phases of your career, these financial dependents might involve spouses, children, or parents.
However, this situation changes after 60 years, mainly for your children. Usually, when you’re 60, your children start earning for themselves and a term insurance plan might not be needed to secure their futures. Additionally, because you are retired, the plan premium will most likely have to be paid by your child on your behalf. This is the reason why extending the term plan after 60 is not a good financial decision in a long time.
Apart from all these above-mentioned points, there are other important factors which you should consider:
Every person has different financial needs, which accordingly also change their term plan needs. Among others, flexibility is one of the important benefits, that helps insurance buyers select the best plan that suits their needs. It is also important to understand the term insurance meaning.
At the time of buying an online term policy, you can compare different plans to find the one that fits your needs. Following are the points that you should ensure before buying a term insurance plan:
Selecting the right insurance company is as important as selecting the right term cover. You should check whether the insurer has a good financial status or health to validate the claims. You should also check the CSR (Claim Settlement Ratio) of the insurer to check their reliability and credibility.
Every policy buyer should look at their lifestyle to determine how much term coverage they require. Additionally, it is equally important to check your liabilities such as any loans (home loans) you have taken, and then add them to the life cover amount. You can also consider inflation as an important factor in your term cover to make sure complete financial protection of your family members.
Term plans allow you to increase your term cover with a choice of riders/add-ons to your basic plan. If the life assured dies because of any conditions mentioned in the rider plan, the nominee/beneficiary receives an extra amount over and above the death payout.
For example: With rising health risks and medical expenses, a critical illness rider is suggested to every policyholder. Accidental death benefits riders can be very beneficial for individuals who travel regularly.
The benefits of term insurance are better when an insurance plan is bought online in comparison to offline plans. The term plan helps in the easy comparison of the plans online and you can save more through it.
The premium amounts are more affordable when you buy them online. Offline plans charge higher premiums in comparison to online plans. And, the digital options of payment further ease the online buying process.
A term plan secures the financial health of your family members in case of an unfortunate event. However, to enjoy the various benefits of a term life insurance plan, make sure to select the right coverage and the right term of your term insurance plan. Before buying a term plan, first, always understand the term plan's meaning and go through the policy documents carefully.
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