Benefits of term insurance plan

Given the uncertainties of life, it has become essential to keep your finances protected. Several life insurance policies help you do so, one of which is a term insurance policy. It also offers financial protection to your dependents in your absence. However, buying this plan can be a tad bit tedious if you don’t know the benefits of it.

Fret not! In this article, let us take a look at some of the benefits of this plan.

Easy to understand:

Life insurance policies come with several insurance-specific terms which might get a bit difficult to understand. One of the benefits of term insurance is, unlike other insurance policies this plan is fairly easy to comprehend.

Since it is a pure life cover, the plan’s features and benefits revolve around offering your loved ones’ financial protection in your absence. All you need to do is, pay the premiums on time and the insurer offers you life coverage for a fixed period.

Grace Period:

When it comes to paying premiums, it is best to not miss them. Some insurance companies also offer you a 30-day grace period from the premium due date for yearly, half-yearly and quarterly mode of premium. Some also offer a 15 days grace period for the monthly mode of premium. During this time, the policy remains active, however, your policy will lapse if no premium is paid thereafter.

Death Benefit:

All insurance companies have a defined benefit structure associated with the term plan they offer. At the time of purchase, you have to select a structure that best suits you. Depending upon the benefit structure chosen, your nominee/beneficiary will receive the “Sum Assured on Death”

This benefit is released only if you have paid all the premiums regularly to date. Furthermore, the policy has to be in force on the date of your demise.

Additional Riders:

Term insurance plans come with additional riders which help to enhance the benefits offered by your insurance policy. You can select a rider by paying an additional premium. While selecting the rider, analyse which one is more suited to your family’s and your lifestyle.

Some of the common riders offered by insurance companies are:

• Accidental Death Benefit Rider

• Accidental Total & Permanent Disability Benefit Rider

Being financially protected can take a huge load off your shoulder. Term insurance offers you benefits that are specifically designed to offer security when it comes to finances in the future.