The coronavirus pandemic affected innumerable lives globally. Previously, insurance policies were perceived as a means to save taxes or investments.
Regardless, the COVID-19 pandemic paved a path to a new normal. Now everyone has realised the importance of securing and protecting health. Besides the necessity of protection, people have acknowledged the need of having the right financial solution during an unfortunate situation.
Comprehensive coverage makes the term insurance plan most optimal among other insurance plans.
What is a Term Insurance Plan?
Being one of the most straightforward types of life insurance policy, term insurance provides life coverage for a specified tenure.
If the insured person passes away during the term policy tenure, then a lump sum payout of the sum assured is disbursed to the nominee.
Along with being simple to understand, term plans offer some peculiar features. Take a look at some of the leading features of term insurance plans you must know:
Affordability:
The most astonishing feature of a term plan is its affordability.
The term plan is a type of life insurance plan that offers financial protection to the family in the event of the untimely demise of the bread earner. Compared to other life insurance plans, the premium for a term plan is the cheapest. The term plan premium consists of mortality charges and admin costs for policy issuance.
Ease of purchasing:
Buying a term plan is as easy as online shopping! Compared to other kinds of life insurance products, securing your life with a term insurance plan is the easiest.
2 ways to buy term insurance:
(i) Offline:
Purchasing from an insurance intermediary like an agent or a broker.
(ii) Online:
You can purchase a term insurance plan directly from an insurance company digitally. This adds to your convenience, and you can avail a plan in a few clicks. The online mode of purchasing term insurance plans is preferred by most as they are cheaper compared to offline plans.
In online mode, no physical documentation is required and comes with the benefit of quick processing.
Sum assured:
The total size of coverage offered by a term insurance plan is called the “sum assured.”
Generally, the overall sum assured is sufficient to ensure complete coverage for the family’s needs and necessities.
The “sum assured” is the most basic yet important factor of the term insurance policy as it influences the payable premiums.
The flexibility of disbursal:
Here’s another thing that makes term insurance ideal, you can choose how the benefits would be paid to nominees, as per choice and convenience.
This means that the earned benefits can either be disbursed as a lump-sum payment or as regular monthly payments, depending upon the needs of your family.
