Working your entire life just to die without leaving behind anything for your family is unquestionably a blamable and irresponsible affair. This is just one reason why anyone would want to invest in a term insurance policy without giving it a second thought.
But before you invest in the Best Term Insurance, it is imperative to consider understanding the features of such an investment policy. If you are a beginner, this post is going to elucidate the lesser-known facts and features of the coverage.
Fact 1: It’s The Most Cost-Effective Coverage
Calling term insurance policies one of the most cost-effective policies is not false. These policies don’t come with investment components. Thus, their premiums are lower than any other insurance policy. To keep your family financially stable amid your unfortunate demise, you need to invest in the Best Term Plan at a nominal cost.
Fact 2: Pay the Premium Only Until You Retire
Even if you choose the cover for 85 years of age, you are beneficial as you require paying the policy premium only until your retirement. For instance, if you are 35 years, you are able to cover life within 50 years term plan, i.e., up to 85 years of age. Nonetheless, you can choose the premium payment tenure that falls well within the retirement age even.
Fact 3: Flexibility to Get Payout as Monthly Income
The payout option that the insured chooses will determine the financial security of the family in the absence of the insured. It is imperative to choose the option of keeping the financial strength and knowledge of the nominee in mind. Even if the nominee is savvy financially, the monthly income can make their life easier. The monthly income will help in sustaining the lifestyle. You can choose either of the two monthly income plans:
- Fixed monthly income policy or
- Increasing the same income policy
Fact 4: The Choice of Riders for Making the Term Plan Comprehensive
The ad-on benefits or riders enhance the policy plan by offering additional coverage to the insured one. These riders come with additional cost and are available within the insurance coverage.
Fact 5: Increasing or Enhancing an Insurance Cover for Significant Life Event
As you grow, the financial responsibilities, as well as liabilities, also increase. Thus, life insurance cover requires enhancements. You can purchase a new plan in order to increase the term life cover. For example, you can upgrade the insurance cover at major life events like:
- The time when your child gets birth
- Your marriage
- While buying a house
To be Precise,
The sole purpose of the term insurance is to protect your family against financial odds and in emergency cases. Thus, when purchasing a term plan, you need to ensure that the trustworthiness of the insurer with a stable financial background & a constant track record of the claim settlement ratio. As a matter of fact, the claim settlement ratio is the number of claims that gets settled by your insurer in a financial year. Thus, these are the lesser-known facts and features of a term insurance policy.