Term life insurance assures you financial coverage in times of dire need. But, as simple as it sounds, it has its loop holes and requires crucial understanding.
We are all aware how difficult it becomes for anyone who does not get financial help and security when he requires it the most. And when it is about our loved ones, seldom do we want them to get into an utter mess. A term life insurance helps in letting the insured person get the benefits of the insurance after a certain period of time, and can also help the nominees to get the benefits if at any time death occurs of the insurer. By choosing the family members as nominees, one can ensure the security of them if unexpected troubles befall them in future. This article discusses benefits and problems of term life insurance and also the factors which must be kept in mid and the best time to buy the plans.
The benefits of term life insurance:
The term insurance policy that you wish to purchase has many features which would help you understand it better and help you decide when you must purchase it for a well organised, secure life.
- The term of the policy: The policy that you wish to purchase would be for a minimum of 5 years and you can choose to extend the term for 25 years or even choose it for your whole span of life too. With flexible modes of paying the premium (either a single premium, a regular premium, a yearly or a quarterly or monthly premium), you can be assured of the longevity of the benefits that you will receive. The minimum age limit for applying remains at 18 and maximum remains 65. It is generally advised that you go for the longer period premiums as the returns are also more in such cases.
- The taxes: You can get profitable tax benefits as the premiums for the term insurance policy that you pay qualify for a deduction of taxes under section 80D of the constitution. Thus, paying the premiums for your protection plan will help you not only in securing your future and your family’s future, it will also entitle you to attractive tax returns.
- The choice of the plan you go for matters: You may, while choosing your plan, either opt for a single life plan or a plan for a joint life. As the names suggest, a single life plan will protect only the insurer whereas the joint life policies will benefit the nominees of the insurer either when the policy ends or when the insurer dies. The joint life plans are thus always more profitable for a secured future and also for getting coverage on accidental deaths of the insurer to the beneficiary mentioned.
- The maturity age: The maturity of the term plans are usually at around 70 years of age and if the person wishes to get a later maturity date, then the amount of premiums also get higher.
To choose the best term life insurance, one must keep a few things in mind:
- Always choose a plan that you might find convenient do pay the premiums for. The expenses that you need to bear would be for quite a long period of time and so, consistency becomes a major aspect for the insurer.
- The company which you are going to choose for the protection insurance should be a reputed one, with trustworthy FICO scores on their funds. The reliability of the company makes sure that one would not have to fear about the claims and his premiums would also not go in vain.
With these ideas, it becomes easy for every person willing to purchase a policy and he can also rely on the organisation he is going to engage with for a major part of his life.