Term Insurance plans are the purest insurance plans available in the market. There are different types of insurance plans in the market like Term Insurance, Endowment Insurance, ULIP, etc. Every type has its unique features. I have already written one article about the difference between insurance and investment. So, it is good to select the suitable insurance plans to protect your life and family. This article presents the key facts about the term insurance plans. If you have any doubts post it in the comments section. Subscribe to our future articles here.
Term Insurance Plans
The following are the key facts about the term insurance plans.
- Term insurance plans are the purest form of insurance plans. It will cover the pure risk of your dying.
- In the event of your death, your nominees will receive the assured amount.
- You will not get any benefit, if you survive the policy term. As already said, the purpose of this policy is to protect your family from your death.
- The premium for term insurance policy is very low compare to other insurance policies. For example a 30 year old person takes 20 years policy for the sum assured of Rs.500000. His premium will be just Rs.1500 per year.
- Premiums are payable every year.
- Generally maximum entry age of this policy is 50 years.
Importance of taking Term Insurance
In our country there is very little knowledge on the term insurance and its benefits. Another reason why people not shown interest is, they have the wrong assumption of seeing insurance as the investment and looking for the decent returns at the end of tenure.
If that is the case, one should not think about taking the insurance. There are lot other products available in the market to earn good returns. But, when you are no more, who will support your family or give the needed financial support. Taking term insurance is like sacrificing some money to save your family if you are not in this world any more.
Anytime did you think that when you are taking the car insurance, did you get the returns at the end of year?. But, you are benefited when you met accident. Even we are protecting our vehicle by taking insurance, why not save our family by taking the term insurance?. If you are the only earning member in the family, first thing you have to take the term insurance with maximum coverage. Spread this awareness to your friends.
It is the purest form of insurance cover for your family. If you are thinking about protecting your family from your death and not looking for any returns, it is the suitable policy for you. Hope this article helped you to understand the importance of term insurance policy. If you have any doubts post it in the comments section.
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