Which is the Best Term Insurance Plan For You – Regular Term Plan or Smart Term Plan?

The unpredictability of life is not in our hands, but we can prepare to deal with any adversity effectively. That is why obtaining the appropriate insurance coverage for your loved ones should be on your priority list. However, with a plethora of plans at your doorstep, it might not be easy to choose the best plan. The following article explains regular plans and smart plans and what makes them different from each other. So, continue reading to find out the plan for yourself.

What is a Term Insurance Plan?

Term life insurance is a type of life insurance that covers you for a set period. If the life assured dies during this time, the beneficiary receives the sum assured as the death benefit. Term insurance plans ensure that your family's financial situation does not suffer while you are away. So, when purchasing term insurance for your dear ones, search for a policy that provides comprehensive coverage rather than just a death payout. Moreover, to acquire insurance that offers various benefits, you must do your homework and research extensively. 

What is a Smart Term Insurance Plan?

Smart Term Plan is a flexible term insurance policy that adapts to your changing needs. It offers your family overall financial security while you are away. Situations like a physical handicap, critical disease (such as heart attack, cancer and kidney failure), and death are all covered under a smart plan. Moreover, additional advantages are available in the form of riders, such as accidental cover. It also offers a variety of death benefit options, including an increase in your monthly income as well as lump-sum distributions. One of the most exciting features is that you will receive a return of your premiums if you live till the end of the policy period.

Regular Term Plan Vs Smart Term Plan

Here are some points of difference between a regular plan and a smart term plan. 

• Financial Protection

A smart term plan is a versatile insurance policy that will cover you in the event of any unfortunate event. So, if you are diagnosed with a critical illness such as cancer or heart disease, a smart term plan can provide you with urgent financial assistance in the form of accelerated payments. On the other hand, you will have to buy additional riders for such benefits in the regular term insurance policy.

You may also like to read:- What are the Reasons that Emphasize the Need to Review Term Insurance Cover Every Year?          

• Return of Premiums

Usually, when you purchase term insurance, you do not receive a maturity benefit. They solely serve to protect your family financially in the event of your untimely death. And if you live to the end of your policy's term, you will not receive any death benefits, and all of the premiums you have paid over the years will be for nothing. With the Smart Term Plan, however, you have the option of receiving a return of your money. So, If you live till the end of your policy term, you will be paid the total amount of premiums you have paid over the years, and your policy will then be cancelled.

• Death Benefits

You can only get lump-sum payouts with term insurance coverage. However, with smart term policies, you have complete control over how the insurance money is distributed to your loved ones in the event of your untimely death. The available options are payouts in a lump sum, monthly income, regularly increasing the payout to battle inflation or increased payouts after achieving certain milestones. 

Which is the Best Term Insurance Plan For You?

It is advised to purchase a flexible term insurance policy that will grow with you. The arguments mentioned above advocate in favour of a smart term plan. However, the act of purchasing life insurance is a personal and most important financial decision of your life. Hence, it should be done after extensive research and comparison between different policies. Moreover, you should prioritize your needs and requirements over popular opinion. 

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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.