The main reasons for Term Insurance Plans’ popularity
When there are plenty of insurance plans to take, why term insurance plans are popular?
There are a number of insurance plans that give you good returns and other types of benefits like riders. Perhaps, despite such return yielding plans, the term plans have a unique place and welcome among people. Although people have the investment type of insurance plans, they still want to have a pure term plan. So, there should be some reasons for people to choose the term insurance plans instead of other types of insurance policies.
Here are the reasons why people prefer term insurance plans:
- The best protection for your family and loved ones: Undeniably, unlike any other plans, term insurance plans can give the best financial protection for your family after you. Anyone who cares about their loved ones and wants to secure their future after their demise will certainly choose this type of insurance plans. The term plans are specially designed to give protection to the deceased family upon his or her demise, especially who is the primary source of the income for that family.
- Cheap and affordable: Although the investment type of plans can give you a good return for the premium you pay, they are still expensive. You need to pay a higher premium for such return yielding plans. Therefore, such plans may not become affordable to all, and it may also not fulfil the expectation of an average middle-income group. The term insurance plans are affordable and available at a very cheap premium amount, even for Rs 1000 per annum. However, the sum assured, or the death benefit your family may receive after you may vary according to your chosen premium and tenure term.
- All insurance companies have term plans: The term plans are the basic type of insurance plan designed to give only protection to the family in case of the insured demises. Moreover, according to the IRDAI specifications, every insurance company should have term plans as their basic products for the people. Therefore, with almost all the insurance companies having this insurance plan and with more or less the same specifications and similar sum assured and death benefits, you can confidently choose the company you prefer to buy term insurance plans.
- Comprehensive rider benefits: The term plans also come with the rider options to give you the extra insured benefits. This is the most welcoming feature of the term insurance plans offered by the insurance companies. The riders may include critical illness benefits, accidental disability rider benefits, premium waiver, and much more. However, the premium cost may be a little higher if you want to choose the riders, but at the same time, you can enjoy extra advantages during your lifetime, in case of any uncertain happenings.
- Highly flexible: Another primary reason why the term insurance plans are popular is their flexibility. Unlike other types of insurance plans, the term plans give plenty of flexibilities for the insured. This may include your flexibility to choose the cover till your age of 99, the flexibility to choose your tenure period right from minimum 5 years to even up to 50 years based on your age at the time you take the term plan, pay till 60 years of your age and get the retirement benefits; however, this depends on the type of term insurance plans you choose and much more.
- Flexible premium option to pay: Term insurance offers flexible premium payment option, and you can choose your preferred payment mode according to your choice. You can pay the premium annually, half-yearly, quarterly or even monthly based on your budget and paying ability. Therefore, this is another major reason why term insurance plans are popular.
- Increase your life cover: You have the option to increase your life cover over the years if you feel you want a higher cover. If you feel that your family’s financial needs are growing and some debts are to be taken care, you have the flexibility to increase your life cover any time of the tenure. However, the premium will also vary accordingly.
- Tax benefits: This will be the key highlight of the term insurance plans. Similar to any other insurance policies, the term plans also give you tax benefits such as Section 80D and Section 10(10D). These tax benefits will help you to reduce your burden of tax-paying and stay comfortable.
- Cover your spouse too: The term plan also gives an option to include your spouse too in the policy and provide an additional cover for her/him. In this case, both the insured will gain the death benefit, and upon the demise of one partner, the other will receive the sum assured. And when both the partner passes away, the nominee, who is mostly the children, will receive the death benefit amount.
- Easy to purchase: The documentation and disclosures are simple and easy to produce for the term insurance plans. Therefore, anyone can easily buy the term plans instantly without many paper works. Moreover, the online sources will also enable you to buy your term plan from your place easily. In fact, when you attempt to buy the term insurance online, the need to produce more documents or proofs is less or sometimes even nil.
There are many online sources available to help you quickly buy term insurance plans online. Just a few clicks can help you to get the job done easily in minutes. In this aspect, Bimakaro.in is one of the popular insurance aggregators is actively functioning online to help people buy their preferred and right type of term plans. They also help you choose the right insurance company, which is reliable and has a good reputation in the industry. You can easily buy the cheap and best term plans from Bimakaro.in.