Insurance is a critical aspect of modern life that provides financial protection against various risks that can cause significant losses, such as accidents, natural disasters, and illnesses. As such, insurance companies have become an integral part of our economy, and their websites have become crucial tools for both customers and companies.In this article,we will discuss,one of the most popular Insurance policies i.e Term Life Insurance
• What is Term Life Insurance?
Term Insurance is a type of life insurance product that offers Financial security to the Policyholder for a specific period, typically between 10 to 30 years..If the policyholder dies during the term period of the policy, then his Beneficiary is paid the death benefits by the Insurance companies. The purpose of taking life insurance is to provide life cover to the policyholder and financial security to his family.
• Why should we choose Term Insurance?
Term Insurance provides a complete life cover. The premium for a term life insurance policy is typically lower than other life insurance policies.It provides a financial security for your Family in your absence.Infact there are many advantages of this Insurance which are discussed below.
• Features of Term life Insurance
Though there are many features and advantages of this Insurances, some of them are provided below:-
- Affordable Premiums : The premium for a term life insurance policy is typically lower than other life insurance policies.
- Convertibility : Some Term Life Insurance policies ,offers the policyholder’s to convert their policy into a permanent life insurance policies
- No Cash Value : This policy only pays out the death benefit to the beneficiaries,if the policyholder passes away during the term period of the policy.
- Tax Benefits : Buying a term life insurance,also provides you tax benefits. As per section 10 (10D) of the Income Tax Act*, the sum assured that a policyholder receives after the maturity of the plan is tax-free; this also applies when the person insured surrenders their policy or loses their life. Furthermore, the bonuses that are received with this amount are also exempt from tax, under section 10 (10D).
• Choosing a Term Life Insurance
While choosing a term life insurance, a few elements should be thought of. These variables incorporate the span of the policy, amount of coverage needed, the premium amount, and the insurance company’s financial strength. It is fundamental to look around and compare policies from various guarantors and track down the smartest policy that addresses your issues.
Before concluding this article, I just want to tell you that Term life insurance policies are an excellent option for those looking for affordable life insurance coverage for a specific period.When you select a term life insurance,it is important to determine the duration of the policy,The amount needed to take this policy and the status of the insurance company in the market.