For the most part, a term life insurance is the one that gets you covered for a long time. We’re talking about decades’ worth of coverage here. If by any chance the insured person dies amidst the time period specified in the policy, the benefit shall be paid. Term insurance can be a very good tool for people who wish to insure the safety of themselves and their family members.
But, before we dive into the intricacies of term life insurance, we need to address term life insurance itself.
What is term life insurance?
A term life insurance, as the name suggests is an insurance type in which a person is covered for a period of time. Now, this period of time is referred to as the “term” here. The policy coverage starts the day the policy is purchased, and it continues to stay valid for the duration mentioned in the policy itself. For example, a person buying insurance at the age of 20 will have coverage till they’re 60 years old if the coverage mentioned in the policy is 40 years.
Having term insurance has its own set of perks. You get to enjoy benefits that are absent in other kinds of insurance policies. But, it is imperative for you to go through all the information there is on the policy that you’re buying. Having thorough knowledge of the policy you’re signing up for is crucial, because you don’t need any missing points.
What perks do I get from term life insurance?
Speaking of the perks, term life insurance has a few perks that’ll help you out in the long run. And if you’ve got a great health, you can avail a lot more options that are, for the most part, unavailable for people with bad health (smoking, drinking habits, etc.).
Perhaps the key benefit that comes equipped with term insurance is its prolonged coverage. As mentioned above, term insurance starts from the moment you buy it, and ends the moment its term finishes. Term insurances can even cover someone’s entire life, all they have to do is opt for a policy that suits their needs the best.
Another perk of having term insurance is the premium options it comes with. One of the best things that come with term insurance is the fact that you pay less premium for the coverage you get. Also, if you have no serious health issues or smoking habits, the premium prices are even less. Premium prices are less for women when compared to men. You can avail a high priced insurance at the cost of a few thousand bucks.
Contact less processing
In this day and age, everything has gone digital, even term insurances. No longer is one required to go to the insurance company and get all the formalities done. Getting multiple quotes and signing up for a chosen life cover can easily be done from home now. All one needs is a stable internet connection and a smartphone, laptop, or any device that lets you go online.
Favorable tax deductions
One of the best things about term insurance is the fact that tax deductions work in your favor. Yes, the tax applicable to your premium covers not only you but your spouse and dependent children. However, bear in mind that the deduction only occurs when the premium paid is less than 10% of the assured sum.
To sum it up
Ensuring your family’s safety has become a lot easier now. With online facilities and better premium options, it has become much more affordable than ever before. The perks listed above are just a glimpse of all the options that you can avail when you have term insurance by your side. Other than term insurance, as an employee of an organization, you can enjoy the coverage of a group life insurance as well.
This actually keeps your family’s financial independence secured. A group life insurance is nothing but a policy that covers a group of people that belong to an organization. For the most part, the employer can pay the premium for the policy but the employee can contribute to the pool as well. It is a win-win situation for all.
Now that you’re equipped with the know-how of the perks associated with term insurance, it’s high time that you ensure your family’s protection.