What is a Term Life Insurance Plan?
A term plan is a life insurance product covering the policyholder's lifetime risk for a fixed period against a fixed premium. In an unfortunate incident resulting in the policyholder's demise during the policy term, the nominee is paid the death sum assured benefit. Thus, the Term plan is defined as pure protection insurance that ensures the family's financial stability upon the breadwinner insured's untimely death.
The plan’s critical standout feature is its high coverage for an affordable premium. The substantial death benefit steers the dependent family through the trauma. It also helps liquidate the existing liabilities and continue with the lifestyle unhindered to pursue future aspirations.
Why choose a Term Life Insurance Plan?
The policyholder must explore all the design contours even after grasping the answer to what is term life insurance plan is to make an informed choice. It is pertinent to point out that Indian life insurers offer several term plans in different flavors to suit individual preferences.
Once the policyholder is confident in the knowledge gained about every nuance, choosing the right plan at the right time to gain fully from its multiple benefits is no longer daunting. While the policyholder is spoilt for choice, it is sensible to analyze the options to strengthen the family’s financial shield. The benefits to cope with every eventuality, therefore, are summarized below.
- Hefty coverage at an affordable premium.
- Easy to comprehend functional features.
- Flexibility to customize Death Benefit pay-out.
- Augmented coverage with additional riders.
- Coverage for critical and terminal illnesses.
- Coverage for the accidental outcome.
- Life-stage augmented coverage.
- Option to add a spouse for the joint overage.
- Option to choose Return of Premium.
- Income Tax exemptions.
Term plans have emerged as a life insurance necessity for securing the dependent family’s financial future when the policyholder is not around due to tragic events. High sum assured for a low premium makes the policy a popular financial instrument. Other innovative inclusions like the riders, Return of Premium, and tailored pay-out options are icing on the cake.