Top 5 Reasons Why You Must Buy A Term Life Insurance Policy
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Updated on Aug 08, 2023
When you buy term life insurance online you don’t just get a life cover, but along with it, you also get a host of other benefits. This is why a term life insurance policy is so useful. It gives you an affordable life cover that allows you to keep your loved ones safe. Take a look at this article to know why you must compare insurance plans and find the best term insurance policy.
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5 Reasons for Buying a Term Life Insurance Policy
1. Economical
The biggest advantage of term insurance, and one of the main reasons why you should buy a plan, is the affordability factor. Term insurance is cheaper than having dinner at a restaurant! Yes, that is correct. You can get a term cover of about INR 1 crore by paying under INR 500 a month. This is a huge reason why you should never shy away from buying a term life insurance policy.
2. High coverage
Another crucial reason for choosing a term insurance plan is the high coverage that you get here. You can easily get a high cover of a few crores when you buy a term plan. Getting such a high cover in other forms of life insurance can be very expensive and it can also be rejected, but your chances of getting the highest coverage amount in term insurance are pretty strong. Also, the process to get term insurance is very simple. You can instantly buy term life insurance online after comparing the different plans in a matter of a few minutes. This allows you to cover your life adequately in a simple and quick manner.
3. Riders available
A term insurance plan is a pure life cover, i.e., it doesn’t offer any return component. If you outlive the policy period, there is nothing to be expected in return. However, if you buy the term insurance riders, this plain-vanilla life cover gets elevated and you stand to get more value out of it. Consider getting some riders such as the waiver of premium rider, personal accident benefit rider, critical illness rider, etc and make your term cover more flexible. Do note that the riders push up the cost of your overall cover, so you need to compare insurance plans and choose only the riders that would be of best use to you.
4. Tax benefits
The tax benefits available on term insurance are very handy too. You get an IT rebate of up to INR 1.5 lakhs a year when you pay your term life insurance premium. This is a huge benefit and another reason why you should consider getting term insurance.
5. Multiple payout options
All families are different and their financial needs are different too. Keeping this in mind, the term plans have various payout options for the death benefit after the policyholder’s death. You can assess the financial needs of your family, the financial abilities and knowledge of your loved ones and then choose the option that would be beneficial for them. You can opt for the lump sum benefit where the entire sum assured would be paid out in one go. Else, you can opt for the staggered payout, where it would be broken up in instalments and paid over a period of time. Choose the one that would be of most value to your family.
These are the main reasons why you should buy term life insurance online at the earliest if you have not done so already. Thankfully, there are many life insurance companies and you will find many options when you look to purchase your term life insurance policy. Go online, compare insurance plans and find your ideal cover. Then, enjoy all of the benefits mentioned above and stay protected.
Also Read: How To Compare The Best Online Term Insurance Plan?
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FAQs on Why You Must Buy A Term Life Insurance Policy
What is term life insurance, and why should I consider buying it?
Term life insurance is a type of life insurance policy that provides coverage for a set period, typically 10 to 30 years. If you pass away during the term, the policy pays out a death benefit to your beneficiaries. Term life insurance is an affordable and straightforward way to provide financial protection for your loved ones in case of your unexpected death.
What are the benefits of buying a term life insurance policy?
One of the primary benefits of buying a term life insurance policy is that it provides a low-cost way to protect your family financially. The death benefit can be used to pay for your final expenses, such as funeral costs, outstanding debts, and mortgages. It can also provide ongoing income for your family to help them maintain their standard of living.
How much term life insurance coverage should I buy?
The amount of term life insurance coverage you need depends on several factors, including your income, debts, and the number of people who depend on you financially. As a general rule, you should consider buying a policy that provides coverage equal to 10-12 times your annual income.
What happens if I outlive the term of my life insurance policy?
If you outlive the term of your life insurance policy, your coverage will expire, and you will no longer have life insurance protection. However, some policies allow you to convert your term policy into a permanent life insurance policy, which provides coverage for the rest of your life.
How do I buy a term life insurance policy?
o buy a term life insurance policy, you can start by researching different insurance providers and comparing their policies and rates. Once you've found a policy that fits your needs and budget, you can apply for coverage online or through an insurance agent. The application process typically involves filling out a health questionnaire and undergoing a medical exam to determine your eligibility for coverage. Once your application is approved, you'll be required to pay regular premiums to keep your policy in force.
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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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