Features of Term Insurance Plans

You should always be prepared for the future because there is no predicting it and you must ensure the safety and security of your family even in your absence and also, in case of any mishaps. One of the best ways to ensure the financial interests of your loved ones is to purchase a term insurance plan.

Besides being affordable and extremely efficient, term insurance plans have a variety of features that make them a popular choice. Take a look at them to help judge better.

You May Also Like to Read:- How To Choose the Right Term Insurance Plan?

Tax Benefits Under Term Insurance Plans in 2021

Features of Term Insurance Plans

Following are some of the features of term insurance plans:

1. Affordable

One of the biggest features and advantages of term life insurance plans is that they are affordable, especially when compared to other types of insurance plans. Since there is no investment component present with term insurance plans, the premiums are cheap. Nevertheless, it is not to say that they do not provide sufficient coverage. Rather, it helps to reach your insurance goals through gradual and regular payments. 

2. Simple Terms and Conditions

Buying an insurance plan can be a daunting prospect. This is understandable as they often involve numerous terms and conditions that are extremely important to ensure there are no problems later on. Term insurance plans have simple terms and conditions which makes them appealing to potential customers. Term insurance provides you coverage for a particular period known as the policy term. In case of your unfortunate demise during the policy term, your beneficiaries will receive a death benefit. However, there is no maturity benefit should you survive beyond the policy term. 

3. Staggered Payouts

Term plans provide you with the option to lend out staggered payouts instead of a lump sum. This helps if you have growing adolescents, who need money at regular intervals or spendthrift beneficiaries. Under this option, you can either choose monthly payouts or monthly increasing payouts. The latter is especially useful if you have growing children whose financial expenses are likely to increase every year as they grow older.

4. Riders

You can add a variety of riders to your basic term insurance plan for extra security. There are riders for accidents, disabilities and more. You can choose from them based on your circumstances and needs to build up a robust term insurance plan that will help you later on.

5. Easy Payment Options

Not only is a term life insurance plan affordable, but it has easy payment options too. You can pay the premiums via instalments that are monthly, semi-annually, quarterly and even annually. Some plans also offer one-time payment options. This is very advantageous for the average-income individual looking for financial security for their loved ones without creating a burden in the present.

Also Read:- Common Term Insurance Myths Busted

Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.