Reasons: Why You Should Buy Online Term Insurance Plans

Everybody saves money in some format or other format for achieving financial goals. It can be money saved for your child’s higher education or marriage or may for your own retirement. If you are the only bread earner for your family everybody’s financial goals are linked directly to your income.

Now be bit more practical, life is never a smooth ride. As a only person in the family responsible for everybody’s financial needs you also need a way to mitigate the risks associated. What if you are not there then who would take care of everybody’s need? A term plan helps you prepare for all these uncertainties. It is technically the most low cost medium to protect you and your family in case of financial exigencies. A term insurance is the simplest form of insurance product ever available. All insurance products which give you both opportunities to invest and also insure are practically a mix of a term insurance and any investment product that you can think of. But for all those products which ensure that you get something at maturity you practically end up paying much higher fee to insurance companies for the same amount of sum assured. The premium you generally for a term insurance plans are practically as less as 1% of your annual income.

Keeping in view the importance of term insurance you should look into two basic points while looking for a term plan:

a) The sum assured under your term policy should be able to provide your family with adequate amount income in case of your unfortunate death.

b) The tenure of the plan that you should select should be equal to term of period you intend to work. A term insurance should be taken a maximum term may 65 years

Below is a list of reasons why you should buy a term insurance plan:

a) Low cost :Since the term plan is not meant for any return on the money that you pay as premium so you end up only paying just for the cost of the sum assured. This makes it the cheapest form of insurance with the lowest premium.

b) Financial security: A term plan is the best tool to ensure financial security for your loved one when you are not there to take care of them.

c) Very flexible: The major advantage buying a term plan is the flexibility it offers to the policyholders. You also have an option to buy online and offline both plus and you can compare your polci by term insurance premium calculator it give opportunity to customize the plan as per your need

d) Low claim rejection: Since term policies are the simplest form of insurance product the chances of rejection of claims is very low compared to other products. One thing that you need to keep in mind that you should always disclose every information with the insurance company relating to you wealth and health, lifestyle and habits so that your family doesn’t face any problem in situation of claim. Even IRDA, the regulatory body of insurance industry restricts insurance providers from rejecting claims on the basis information disclosure after 2 years of the term.

e) Riders: Term insurance also come with additional benefits also called riders which you have an option to opt or not. Riders like critical illness, death due to accidents etc make these policies more effective for the policyholders. But you should always choose a rider when you feel there is a need of the same.

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