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5 min read
Updated on Nov 20, 2022
Term insurance is one of the best insurance products you can fall back upon in times of need and distress. However, like any other form of insurance, term insurance too has its set of pros and cons, which are worth considering before buying the plan for either yourself or your loved ones. Here we discuss in detail the advantages and disadvantages of insurance for a life-term to help you make an informed decision.
Before we delve any further, let us take a quick look at the meaning of term insurance. It is essentially the most basic life insurance product that works by offering a huge life cover to the insured. Life cover refers to the total amount of sum assured. A term insurance plan generally offers life cover at a very reasonably affordable premium to the policyholder with the objective to ensure that insurance is made available to every person.
This is because term insurance is a very vital component of financial planning for the future. It makes sure that in the unfortunate event of death of the policyholder, their respective family is well taken care of through the financial protection guaranteed by term insurance. In other words, a monetary benefit is given by the insurance company to the beneficiary/nominee of the insured in case of the latter’s death.
Since term insurance is issued for a specific time period, it only makes sense then that for the financial benefit to be handed out to the nominee, the death of the insured must have happened during the term of the policy. The specific policy term is stated in the term insurance plan.
Also Read: What is Decreasing Term Insurance?
As stated earlier, every insurance product comes with a set of pros and cons which must be taken into consideration before buying a plan. For instance, life insurance being one of the most important insurance products, also has certain drawbacks. Just like the disadvantages of life insurance, there are disadvantages of health insurance and other types of insurance plans.
There are several reasons why term insurance plans are one of the best choices to invest in for a lifetime:
Just like a term insurance policy has several benefits to offer, there are a couple of disadvantages of buying term insurance for your loved ones:
Read More: 5 Steps To Follow When Buying Term Insurance Plan Online
Summing it Up
Term insurance is considered to be one of the best life insurance plans in the market. The prime reason being that it offers a lifetime of comfort to the loved ones of the policyholder in case of their untimely demise. However, like everything has another side to it, so does term insurance.
We discussed the advantages and disadvantages of life insurance in this blog. We hope that this information helps you make an informed choice towards choosing the plan for the future of your family and loved ones. For more details on the best term insurance plan to buy in India in 2022, do visit PayBima.
Also Read: Term Insurance Renewal and Why Is It Important?
PayBima Team
PayBima is an Indian insurance aggregator on a mission to make insurance simple for people. PayBima is the Digital arm of the already established and trusted Mahindra Insurance Brokers Ltd., a reputed name in the insurance broking industry with 17 years of experience. PayBima promises you the easy-to-access online platform to buy insurance policies, and also extend their unrelented assistance with all your policy related queries and services.
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