Why you must invest in Term Life Insurance Policy

Not sure which type of life insurance you should be investing in? Why not consider Term Life Insurance?

Term Life Insurance is temporary insurance coverage that offers you financial stability and safety over a specified period of time. The beneficiary gets tax-free returns if the policyholder dies during the specified term. If the term were to expire, the policyholder could either choose to renew it for another term, convert it into a permanent coverage or let the policy expire.

Reasons to invest in Term Life Insurance:

1. Affordability – The costs of Term Life Insurance are a fraction of the cost of Permanent Life Insurance because it is temporary. This insurance also provides large coverage at a lower premium. This is due to the absence of maturity benefits and other complexities.
2. Financial stability – In these policies, the death of the policyholders within the term specified in the policy guarantees tax-free complete sum assured returns for the beneficiary. Due to this, managing household expenses, repaying loans, and taking care of the basic needs of the family becomes easier.
3. Simple policies – Term Life Insurance policies tend to be easier to understand. A death benefit is provided to your beneficiary if you die while your policy is in force. Once the term ends and you stop paying premiums, the policy ends. It need not have any other additional components or complexities.
4. Flexibility – Opting out of Term Life Insurance policies is easier than with cash value-based policies. Once the policyholder stops paying the premium the policy ends and the risk cover ceased.
5. Riders – Term Life Insurance policies can also offer some additional benefits, known as riders, along with death cover to the insured. Some of these additional benefits include accidental coverage, critical illness coverage, and return of premium. However, a little extra premium cost needs to be paid. These riders ensure that you get the maximum benefits of life cover without burning a hole in your pocket.
6. Portability – Unlike most insurance plans, especially term plans offered by employers, Term Life Insurance plans do not change just because you changed jobs, started a new business or moved to a new location. If you have invested in this policy before you reach 40 years of age, you get the best, most stable risk coverage for you and your whole family.

For more information on Term Life Insurance policies available, feel free to contact our experts today.