Things To Keep in Mind When Purchasing the Best Term Life Insurance

The importance of a life insurance plan is very well understood as it plays a big role in keeping our family secure. Term life insurance is the purest form of life insurance that helps protect your family against uncertainties in life. Regardless of your savings and investments, untimely eventualities like death or critical illness may significantly affect your family’s financial condition.

Term life insurance is one of the safest and most cost-effective investments one can make to secure their family’s financial future. The best term life insurance provides a pre-determined lump sum amount to the insured’s family in case of his untimely demise. 

Benefits of Term Life Insurance

Buying a term life insurance is fundamental, and its importance cannot be stated enough. The best term life insurance comes with extensive benefits. Here are some of the key benefits of buying term life insurance: –

Affordable Premium

One of the most significant benefits of a term life insurance plan is its affordable cost. It is available at a lower premium compared to other insurance policies. Also, the premiums are even lower if you buy it early in life, and it will not change as you grow old.

Easy to Understand

Many people find it difficult to understand the insurance-related terms of various insurance policies. But term life insurance is very easy to understand. The framework of this insurance policy is simple, which makes it one of the safest investments.

Multiple Payout Options

The best term life insurance provides you with multiple options to receive the death benefit. You can choose to receive the lump sum amount in a single payment. Or, if you feel that your family may not be able to handle a large sum of money, then you can opt for a regular monthly payout option, where your family will receive a fixed monthly payment from the insurer.

Additional Riders

The best term life insurance policy comes with various rider options that you may choose to add on top of the standard policy. With a rider, you can enhance the coverage of your insurance plan by paying a little extra on the premium.

Tax Benefits

The premiums paid toward a term life insurance plan are eligible for tax deductions under section 80C, and the death benefit is fully tax-exempt under section 10(10D) of the Income Tax Act of India.

Why Do You Need Term Life Insurance?

There are many reasons to buy term life insurance. Here are some of the fundamental reasons to buy this policy: –

Protection for Family

The benefits offered under the best term life insurance plan can be used by your family to meet their monthly expenses. It can also help them fulfil major financial objectives such as education and marriage.

Protection of Assets

If you have taken loans for a house or a car, your family may be burdened with the repayment of the loan in your absence. Your family may use the term plan payout to pay the outstanding loans.

Covers Lifestyle Risks

Today’s lifestyle may lead to various diseases and health conditions. A standard term plan does not cover critical illnesses. But you can add a critical illness rider to your plans. It will help cover all your medical expenses if you get diagnosed with a critical illness.

Inclusions Under Term Insurance

Here are some types of deaths that are covered under the best term life insurance plan: –

Natural Death

Natural death or death due to a medical condition is covered by the best term life insurance plan. If the insured dies due to a critical illness or health condition, the nominee will get the sum insured as the death benefit.

Accidental death

Deaths caused by accidents are also covered by a term life insurance plan. However, there may be certain cases where the claim may be rejected, such as if the death was caused while driving after consuming alcohol or any other drugs.

Death Due to Natural Calamities

The best term life insurance plan offers coverage if the insured dies due to a natural calamity such as tsunamis earthquakes. Etc.

Death caused due to suicides, intoxication, or self-inflicted injuries may not be covered under the term life insurance plan. It would be best if you had the basic know-how about the plan, such as the difference between life insurance and general insurance. Make sure to go through the policy documents carefully. There are many options to buy term insurance. Finding the one that best suits you can be difficult. 

Max Life Insurance offers term life insurance at an affordable premium along with extensive benefits. They are credible insurers whose reputation is well known in the market.