What is term insurance? A term insurance plan is a simple life insurance plan that provides a fixed, defined sum of money, known as the sum assured. If the insured person is surviving until the plan term ends, then no benefits are payable at the end of the term insurance plan.
In simple words, a term insurance plan is the type of life insurance that offers coverage for your entire life. Keep in mind that no maturity benefits are paid to the policyholder if they survive at the end of the policy tenure.
We will discuss the characteristics of the term insurance plan in this article. You should read the entire article if you’re interested in purchasing term insurance.
Features of the term insurance plan
In this section, we will tell you the features of the online term plan. These are the features of the term insurance plan.
1. Get More
The cost of the life insurance policy is reasonable. In this way, it is the most affordable plan to buy for the longer life cover for the same premium rates as the endowment plan.
In the uncertainties of life, death is not the onlyfactor. There are also other factors, such as critical illness, disability, terminal illness, etc., that are considered the uncertainties of life.
If you want to increase the efficacy of your term insurance plan, then it will be possible by attaching the rider to your existing term plan. When you attach the rider to your term insurance plan, then you can get the sum assured on being diagnosed with a critical illness.
3. Enhanced life cover
The best thing about the term insurance plan is that it will increase your life cover. Some insurance providers provide the flexibility to increase the life cover during the critical stages of the policyholder’s life.
4. Tax exemption
The policy holder indeed has to pay the premiums in exchange for the insurance amount when they buy the term insurance plan. Under the tax act, it is determined that the amount claimed by the policyholder of the term insurance plan is free from tax.
5. Secure your loans
Term insurance plans have come to the rescue if you take large amounts of loans such as car loans, home loans, etc. It is also beneficial for those who have invested their money in new ventures by borrowing the money at high-interest rates.
Such a person can easily get coverage for the risk of dying before repaying the total loan amount.
This article tells you about term insurance plans. It is concluded that a term plan is the type of life insurance plan that offers coverage for your life. Deaths that occur due to suicide in the first year are not covered under this plan.