What makes term life insurance the best way to protect your family
by Jessy Jose An Insurance AdvisorOne of the biggest fears of a sole earning member of the
family is not death but what happens to the family if something were to happen
to them. For that reason alone, banks and other financial institutions have
devised savings tools like life insurance, savings plans, and schemes like
fixed deposits and SIP for mutual funds. One must always set aside a fixed
portion of their income for savings and insurances.
There are many different types of insurances and a good
financial planner knows how to create an insurance package for themselves to
protect their family. For starters, one must have life insurance plan, a health
insurance, personal accident insurance plan and a critical illness plan. These
plans ensure that your family’s financial needs are taken care of in case of
your death, in case you contract a major illness, or you meet with an accident
that leaves unable to work.
There are multiple types of life insurance plans to choose
from as well. But if your main concern is to supplement your family’s income in
your absence, then you must opt for a term insurance plan. A term life insurance plan is
valid for a specific period of time and offers death benefit to the nominee in
the event of the death of the insured. The premium for term insurance is low
and is often the only factor that drives people to opt for term insurance.
Term insurance plans offer a lump sum
payment to the family of the policyholder is case of his or her demise. This
payment can be received in the form of one single payment or in the form of
monthly payments for a fixed period of time. This help the family get back on
their feet financially at least.
Term policy is a great protection
plan
for the family, if you’re still conflicted about why then here are some major
benefits that will help you make the choice.
1. Simplicity: Term life insurance plans
are straightforward. Unlike other insurance plans this type of insurance is
simple and easy to understand even for the layman. This makes it easier for the
policy holder to make proper, timely premium payments.
2. Flexible: Opting out of a term life policy is much easier than
getting out of other policies. In term policies if you stop paying premium the
risk cover ceases and the policy ends. Nothing is payable to you as there is no
savings element in the policy.
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Created on Nov 23rd 2017 06:34. Viewed 897 times.