Everyone plans their life in one way or the other. But the only problem here is that life never goes as per ideas. So, you must secure people who are dependent on you for the times you will not be there for them. The most reliable option in your hand is to go for a life insurance policy. It ensures that your family does not face any financial difficulty in case you leave them in uncertain circumstances. However, many people think that life insurances are unnecessary as it lapses if you remain alive after the term. That is where a term plan comes into the role. When you buy the best term plan, you pay minimal premiums and get maximum coverage on death.
Here are some facts about term plans that will show you how the scheme can be beneficial for you.
It Is Cheaper Than You Think
The part where conventional life insurances lack is their premiums. You need to pay a considerable amount of money under the premiums. Plus, you do not receive any maturity benefits if you are alive by the end of the term. On the other hand, when you opt for a term plan, you pay a minimal amount as premium. The reason for the scheme being cheap is that it is pure life insurance. So, your death gets covered at a nominal cost.
You can also combine your term plan with the best savings plan. This way, you and your family get double benefits from the policies.
You Can Turn It In Lifetime Income
When the breadwinner leaves their dependents in unfortunate situations, they have to deal with emotional, as well as financial difficulty. The prior one has no solution to it, but the latter can be solved with the help of term plans. The interesting point here is that term insurance includes multiple payout options with it. The two available choices are:
- Lump-Sum: If your family members do not depend on you for their lifestyle expenses, you can opt for this option. It gives your nominee the assured amount at once. So, they can use it for any purpose.
- Monthly Income: Another method of payment you can choose is monthly income. In this, your family/spouse gets a fixed amount every month throughout their life or the decided term. Therefore, they do not have any issues in managing their monthly expenditure.
These were the two common alternatives that you may find almost everywhere. You can ask your policy provider for any other methods of payment they provide. Once you know your options, you can select the most preferable one. You can also look for Guaranteed Future Plan.
You Can Reduce The Costs By Buying Online
Online mediums for buying and managing policies is not something new. But the number of people familiar with these platforms has increased significantly recently. If you still prefer the offline methods of buying term plans, you must know that you are paying additional costs. The plans go through multiple intermediaries, which increases the overall cost for you.
However, you pay much less when you purchase the best term plan online. This happens because you get in contact directly with the policy provider, and there is no one in between.
You Can Make The Plan More Beneficial
Term plans are known for their flexibility. From sum assured to policy tenure, there is nothing that you cannot turn according to your convenience. Another interesting fact about them is their riders or add-ons. Riders are supplementary benefits that you can add to your basic term plan. Some common add-ons are:
- Critical illness rider
- Partial or permanent disability rider
- Waiver of premium rider
- Accidental death benefit rider
You can include these advantages in your term plan at minimal costs. So, you will be able to use it in multiple situations and not only on death.
There Are Multiple Premium Options
Just like payout, your term policy premiums can also be paid in multiple ways. You can choose one of the two options:
- Single-Premium: This one is most beneficial for you if you have a business or your monthly income is not fixed. You can pay the entire premium amount at once, and then relax for the whole policy tenure. Also, you get to pay less money in this method.
- Regular-Premium: In case you can’t collect the entire premium amount, you can go with a regular premium. It enables you to pay a fixed premium amount every year. Plus, the amount you pay each year for the policy gets included for the tax deduction.
Either of them can be chosen based on your financial situation and requirements.
Conclusion
Now that you have an idea of how beneficial term plans can be, do not delay buying one. Remember that the earlier you begin, the more advantages you receive. You can opt for lower premiums when you have an extended tenure for the policy. So, go for the best term plan and secure your family’s financial future.