Are you living your life to the fullest with your spouse and children as well as parents?
Each time you step out from your home you feel like you’re missing your loved ones and when you arrive back home, you will find them waiting eagerly for you?
You are an extremely lucky person! But, there were many who lived their lives until suddenly, they died. The cause of death can be numerous, but what’s more difficult is the situation that families are faced with.
It is impossible to predict what will be going to happen in the future, however, we can make plans to ensure that our loved ones will be able to at least ensure that they will have enough money to live their normal life.
For this, the most effective thing that could be done is to select the term insurance plan. There are advantages and negatives of term plans that can help to comprehend the concept better.
Advantages of Term Insurance Plan:
The advantages of a term insurance policy will definitely make you want to sign up to get one. Let’s look at the following benefits:
A term insurance policy is one of the most affordable insurance options that are frequently sought after by people. Even if you choose to purchase the most expensive sum assured plan you’ll have to pay affordable rates. The price of the rates for this type of insurance is far less than any other type of life insurance.
Insurance plans are popular for their flexibility. You are not limited to renewing them, but also changing them into a convertible plan. If, after a certain period of time you decide to increase the amount assured by the term insurance plan You can easily make that happen by contacting the insurance company. You can also change to a different term insurance policy without issue.
Term insurance policies are well-known as being easy to understand and easy to understand. Even people who aren’t familiar with insurance are able to comprehend the concept. All you have to do is pay the monthly premiums, and the beneficiaries will receive the money guaranteed in the event of your sudden death.
4. Tax Benefit
If you buy the term insurance plan and you purchase it, you are able to benefit from the tax advantages that go with it. In Section 80C of the Income Tax Act, you are entitled to tax advantages.
The Disadvantages Of A Term Insurance Plan
Although there are many benefits to buying term insurance, however, there are some disadvantages also that come with these plans. Let’s talk about them:
1. No Maturity Benefit
One of the main disadvantages of buying time-based insurance is the fact that you’ll not receive any maturity benefit from it. If you are alive during the term of the policy there isn’t any benefit from maturity. The benefits of the plan will only be available when the policyholder dies.
2. Costs Are High If Are Over 50 Years Old
If you’re purchasing an insurance policy called a term plan later in the course of life, you’ll need to pay for a higher cost. It is the same for those suffering from health conditions or diseases. If you’re smoking, you will have to pay for higher premiums compared to a person who doesn’t smoke.
3. There Is No Benefit For The Policyholder
As a policyholder, you cannot benefit from time-based insurance. It’s intended for the family members of the policyholder that requires financial assistance in the event that the policyholder isn’t in the area anymore.
If you’re purchasing an insurance plan for term use ensure that you verify the claim settlement rate of the insurer. The ratio will help you get an idea of the likelihood of claiming the amount guaranteed by the nominees. To learn more about the term plans on the market, go to the official IIFL’s website. IIFL. You are free to evaluate and select the term insurance plan you’d like to opt for.