Securing your future is the need of the hour, as you never know what life may have planned for you. A term life insurance plan is an effective way of having a security net for you and your family to fall back on during challenging times.
Offered by any insurance company, a term life insurance plan proves to be beneficial to the nominee of the person purchasing the policy in case of death of the buyer during the specified term. A term insurance plan also takes care of the individual in case of any unfortunate diagnosis of a critical or terminal illness. The individual will receive a lump sum amount from the insurance plan. That money can then be used for various treatments, ranging from operations and surgeries to memory care (head to the Chelsea Senior Living website for more info).
Along with the death and health benefits, a term life insurance policy also provides financial assistance for any financially burdening plans, for example, your child’s higher education loan. Wondering how this policy could particularly benefit you and your family? This article provides great insight into why you should buy term life insurance instantaneously!
1. Pocket-friendly and economical plans
A term life insurance plan, as compared to a life insurance plan, is extremely cost-effective and affordable. The policyholder has to pay a specific amount every month, which is decided as per his/her comfort. The death benefit is also decided by the insurance company, according to the decided premium of the plan.
The premium payments can be made either on a monthly basis, or a few insurance companies also provide the facility to complete the payments in a half-yearly/yearly plan. The insurance accumulated throughout the term plan will be rewarding to the policyholder’s family in times of crisis. You can easily compare various term life insurance plans offered by different insurance companies and choose the one that is the most budget-friendly for you and doesn’t cause any hindrance in your daily life.
When it comes to purchasing term life insurance, one of the most significant advantages of buying early in life is the potential for substantial savings on premiums. But one of the most valuable steps you can take to protect yourself and your loved ones is to consider purchasing term life insurance early on. By doing so, you’ll be able to take advantage of significantly lower premiums, making it more affordable to secure the financial safety net you and your family deserve.
For instance, imagine a 25-year-old and a 50-year-old, both looking to secure their family’s financial future with a $500,000 term life insurance policy. As they compare 500k term life insurance quotes, a striking difference can emerge. The younger individual can be offered premiums that are remarkably lower than their older counterpart. This disparity in cost underscores a powerful truth; the earlier you consider life insurance, the more affordable it can be. For the 25-year-old, securing a $500,000 term life insurance policy is not only a wise decision but also a budget-friendly one. They have the advantage of youth, which often translates to fewer health concerns and a lower risk profile in the eyes of insurers. As a result, they can lock in these favorable rates for the duration of the term, providing a safety net for their loved ones without breaking the bank.
2. Safeguarding of capital wealth
Often while taking a loan for any important asset, such as a car, home, or even a student loan, there is always a fear lingering in the back of your mind. There is always the subsidiary stress of how your family would pay back the loans in case something tragic happens to you.
Paying off loans is not an easy task, especially if it’s something as expensive as a home loan. With a term insurance plan, you won’t have this additional stress. Your family’s future will not be hampered by the clearance of loans. In case of debts, the policyholder’s family can withdraw this money and utilize it as per their needs. The policyholder can also select the payout to be monthly, annually or a lump sum as per the needs of his/her family.
3. Convertible plans at your ease
A term life insurance plan is considered to be very flexible. It can be changed as per the policyholder’s needs. This becomes much easier if your insurance provider has implemented CRM systems (you can browse this site to know more) or some similar system to keep track of your policy details and payments. It can also be beneficial in establishing better communication channels between you and your provider, allowing for flexibility in your policy. In case of lack of income due to loss of a job, the policyholder is free to drop the policy. And the best part? They are not expected to pay any penalty for terminating the policy abruptly!
In case you purchased this term life insurance plan at the start of your career when you could not afford a life insurance plan, you can easily convert this plan to a whole life insurance plan once you feel like you have stabilized your career. There are a few restrictions concerning the period of the new term insurance plan, the new amount that is payable by the policyholder, etc., which can be easily resolved by conversing with an agent of the respective insurance company, who will guide you every step of the way.
4. Tax benefits
After the death of the policyholder, the term insurance plan does not deduct any tax amount on the money the nominee receives. This arrangement is made as the premium money that is paid by the policyholder consists of money that is taxed by the government at the time when the payments are made. The nominee, therefore, receives the complete death benefit amount.
An exact estimation of the investment return one will receive can thus be made without the risk of any suspicious activity taking place. Tax benefits are also applicable in cases of withdrawal of a lump sum amount after diagnosis of a critical illness. In case of any critical illness that the individual may suffer from during the term, the individual shall receive the insurance amount without any tax deduction.
5. A straight-forward process, with easy access to insurance quotes
The past few years have seen a great spike in the insurance sector. In India, there are plenty of insurance companies on the rise, making the field an extremely competitive one as every company wants their insurance policy to be the most suitable for customers.
Luckily, this has proven to be a boon for the normal man. One can now compare various term life insurance plans from a variety of companies before choosing the one that, according to you, is the most satisfactory for you and your family. Due to the competitiveness in the insurance sector, there is a hike in more affordable term insurance plans. This has made information easily accessible to potential customers.
There are also plenty of insurance companies that now offer free quotes to potential customers who are looking for a plan that suits them the best!
Investing in a term insurance plan must always be at your terms
Choosing an insurance company that keeps your needs first is extremely important so that the entire process can be carried out at ease. Canara HSBC Oriental Bank of Commerce Life Insurance assures that faith is the most important asset to their company. Just as your family has complete faith in you, you can have faith in Canara HSBC Oriental Bank of Commerce to protect your family in difficult circumstances. You can check out various insurance plans they offer and buy term life insurance to provide a blithe future for your loved ones!
