Term insurance is one of the most popular and simplest forms of life insurance. With a term plan, you can ensure that your loved ones will receive a financial payout (sum assured) if you pass away during the policy term. However, to maintain coverage, you must pay the monthly or yearly premiums to the insurance company on time. Read on to learn everything about term insurance benefits.What are the Benefits of Buying a Term Insurance Plan?
Here are some of the few benefits of a term insurance plan you must know before choosing the right one.
1. Financial ProtectionWhen you buy a term insurance plan, the insurance company will offer your family financial protection in case of your sudden demise. The insurance company ensures your family does not face any financial struggle when anything happens to you during the policy tenure.
2. Affordable Premium
Term insurance is one of the most affordable life insurance plans in India. It enables you to secure a large life coverage at an affordable premium rate. Moreover, buying a term plan at a younger age results in lower premiums.
3. Acts as Income Replacement
If you are the sole breadwinner of your family, your term insurance plan acts as an income replacement in case of your demise. The sum assured can help your loved ones maintain their standard of living, cover ongoing expenses, and meet financial obligations.
