Why Purchasing Term Insurance Is A Smart Decision
In an era of unpredictable times, where critical illnesses and high hospitalisation costs have become the norm, it’s crucial to have a backup plan to mitigate any financial risk that may arise.
One of the best ways to secure the financial future of your loved ones is by purchasing term insurance, as it offers several benefits, including affordable premiums, flexible coverage options and the peace of mind of knowing that your family’s financial future is secure in case of any unfortunate event.
Also, you can easily calculate your term insurance premium online with the term insurance premium calculator, as This tool can save you time and effort in calculating the premium amount manually and helps you make an informed decision before you buy a term insurance plan.
Benefits of Purchasing Term Insurance
- Cost-effective premiums
Term insurance is the most pocket-friendly life insurance policy among all life insurance plans available. It offers comprehensive coverage at a low cost compared to other life insurance plans. In addition, the premiums paid towards an online term policy are much lower than the payouts provided by the plan. Therefore, term insurance provides the policyholder with high-risk coverage at a very reasonable cost.
- Fixed Premiums
One of the significant advantages of having fixed premiums is that it provides predictability and stability in your financial planning. You can plan your finances more effectively since you know exactly how much you need to pay for the policy each year. This makes it easier to budget and manage your expenses, giving you peace of mind.
Once you purchase a term insurance plan, the premium is fixed for the whole policy term. Therefore, it is recommended that you buy the term plan early in life. In the later stages of your life, the premiums will be higher, owing to the potential age-related health risks.
- Term plan riders
In addition to the base policy coverage, a term plan allows you to add supplementary benefits known as “riders” to enhance your coverage further. Riders are add-ons that can be customised to your specific needs, providing additional protection and financial security. These riders can be added to your policy for a nominal fee and deliver benefits beyond the basic coverage of the policy.
There are various types of riders available, each covering specific risks. For example, a critical illness rider provides financial protection in case of a significant illness, such as cancer or heart disease. Similarly, an accidental death benefit rider provides additional coverage in case of an unexpected death, which is not covered under the base term policy.
- Online purchase
Buying a term plan online can be simple. With a simple life cover component and death benefit, term plans can be customised as per your needs. As a result, you can choose a high sum assured that will meet your family’s needs adequately.
When you buy a term plan, the process is quick and hassle-free as you have all the information right in front of you. It is also easier to compare the policy features and benefits online than doing the same manually. A term plan calculator also makes it easy for you to calculate how much premiums you want to pay on your policy based on the sum assured and a number of other factors.
- Financial security
It is important to remember that in the event of your sudden demise, your family may be left with significant financial responsibilities. A term insurance plan pays out a lump sum benefit or a regular income as per your choice to your family members in the event of your demise. This is especially critical if you have taken any loans or mortgages or have additional financial liabilities.
If your family is not financially prepared to handle such obligations, it may result in a significant financial burden, causing emotional distress and financial hardships. You can choose a term plan from Tata AIA life insurance to ensure that your family is financially secure even in your absence.
Having a term plan is a wise decision as it secures the financial future of your loved ones in case of any uncertain event. It offers affordable premiums, financial security, and flexibility in coverage options through riders. Investing in a term insurance policy can be beneficial for your family’s financial well-being and peace of mind.