Learn About Not So Popular Facts About Term Insurance Plans
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Term insurance is a type of insurance that provides coverage for a set period, known as the term. The most common types of term insurance are short-term and long-term plans. Short-term plans typically cover up to 3 years, and long-term plans cover up to 10 years.
There are also hybrid plans that offer some of the benefits of both short- and long-term plans. Though term insurance is a popular option, some less-known facts about it may interest you.
Why are Term Insurance Plans Popular?
Term insurance is a type of life insurance that pays out benefits for a set period, typically one year. The main reason term insurance is popular is that it's an affordable way to protect your family in the event of an unexpected death.
Additionally, term insurance can help reduce your overall risk exposure by protecting several potential financial impacts, such as income loss, medical expenses, and funeral costs.
Term insurance plans are also popular because they offer a way to protect yourself and your family from potential financial losses due to unforeseen circumstances. For example, if you were to become incapacitated and unable to work, term insurance would provide coverage for a set period, typically up to a decade.
In the event of an unexpected death, term insurance can provide financial relief to your loved ones. Term insurance is also an affordable way to protect yourself and your family against major life events such as disability or death.
Unpopular Facts About Term Insurance Plans
Term insurance plans are a type of insurance that typically give policyholders the option to select a certain number of years for their coverage to begin and end. Term insurance is not as popular as other types of insurance, but there are some interesting facts about term insurance that might make it more appealing.
- Term Plans are Cheaper: Term insurance is not as expensive as other types of insurance. A standard term policy can cost around Rs. 16 a day, which is less than many other types of insurance. This makes term insurance an affordable way to protect yourself against potential financial losses.
- Protection Against Unfortunate Events: Term insurance can provide important protection in cases of sudden financial hardship. If you lose your job or experience some other unforeseen event that causes you to lose your income, a term policy can help cover your expenses until you find another source of income.
- Coverage Period is Less: Term life policies usually have shorter periods of coverage than permanent life or disability policies. For example, a term policy might have a duration of 10 years, while a permanent life policy would last for 30 years and a disability policy would provide coverage for a lifetime.
Also, term insurance doesn’t always provide comprehensive coverage. Some policies only cover disability or death, for example, while others include coverage for both events.
The length of coverage: Short-term plans typically have shorter coverage periods than long-term plans, so they're good if you need coverage for a brief period. Long-term plans offer more comprehensive coverage but may be more expensive.
- You Can Add Extra Riders with More Benefits: Term insurance is flexible. You can change your coverage any time you want without having to go through the hassle and expense of getting a new policy. Thus, you don’t need to buy other plans, instead you can modify your existing ones.
Conclusion
If you are one of those who consistently underestimate the potential of term life plans then you are denying an amazing financial backup plan. Considering all the facts mentioned above it is clear that getting a term insurance plan is the best decision you can take forth.
Also read: A Quick Overview On Convertible Term Insurance Plans
