UNDERSTANDING TERM LIFE INSURANCE

As the word itself indicates – term insurance is meant for certain term or duration. It indicates the kind of insurance which can be taken for a pre-decided duration. Term Insurance Plans are a flexible solution that ensures financial help after unfortunate incidents like death, disability, accident etc. The sole purpose of these plans is to ensure that you get the maximum benefit in case of accident or such similar things.

Term Plan can be differentiated into two major parts – Long and Short. Generally people go for short term insurance, where they have to pay fewer premiums. However it is suggested in a number of ways that one opts for long term term insurance. Why? See, it’s a open fact that term insurance provide t o the insurer only after the death of the insured person. So, when you are taking this policy for the benefit of your family members, then why not go for a long term. Since the premiums too are low in term insurance as compared to other life insurance policies, a long term can easily opted for. Of course, the advantage of longer the term, lesser the premium, applies here too.
The good thing about taking term plan is that you are covered 24*7, wherever you are in the world. You require no medical tests (until and unless insurance amount is very large – say for 50lakhs); you get insurance cover with the option of riders and to top all – an insurance cover at a relatively very low cost.

You can also opt for short term life insurance policy, but this kind of policy is good for people who have reached the age of 40 years. In this case, the term will be automatically short but premiums will be comparatively high. (Generally companies take short term insurance plans for their employees where there are chances of the employee leaving the company after certain years).

Out of the above discussed polices in term insurance, whichever you opt for is a decision of yours. But the point is to buy a term insurance plan before the time flies away. So call on the insurance advisor- today!

SOURCE
http://www.aegonreligare.com/