Does Everyone Need Term Life Insurance?

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Does Everyone Need Term Life Insurance?
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Let us understand what a term insurance is?

• As the name suggests, its an insurance policy
  that grants the policyholder coverage for a
  certain i.e. fixed duration of time.
• It is a pure form of life insurance and offers
  death benefits if the insured dies before the
  expiry of the policy.

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• It can effectively care for the financial needs
  of your family in the event of sudden death.
• The death benefit can be paid as lump sum or as a
  monthly payment to your family. Or, another
  scenario where some part of the lump sum will be
  paid and the rest will be given as regular
  monthly payment. All this can be decided at the
  time of buying your policy.

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What are the advantages of term insurance?

• Term insurance is considered as the most
  economical insurance with extremely affordable
  premiums.
• Affordable premiums do not put much pressure on
  the finances compared to other life insurances
  like whole life insurance and endowment plan. You
  can easily make savings, spend on luxuries
  without having to shell a huge chunk on
  insurance.

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• As a result, such insurance can be afforded by
  people with low income and protect their
  interests.
• This is one of the reasons why it is highly
  sought after in the market today.
• These plans are customizable and many insurance
  companies present great offers to accommodate
  your immediate requirements.

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• You can also make use of additional riders to
  formulate your term life insurance. Riders like
  accidental death, critical illness, permanent
  disability, are some other riders that you can
  have merged with your term plan.
• Offering maximum coverage at a comparably low
  price, term insurance cover can be increased,
  turned into other insurance types like whole life.

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• In the case of sudden death or disability of the
  insured, the benefit that you derive can be
  effectively used to care for the financial needs
  of the beneficiaries.
• This money can also be used to repay loans taken
  by the policyholder.

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• The premiums are even lower when you are in the
  prime of your age and opting for a term plan.
  Whether you have people that depend on you
  financially or otherwise, buying a term plan is
  extremely beneficial. With low premium, it
  shouldnt cost you much to have this policy.
• There are tax benefits under Section 80C of the
  Indian Income Tax for you to enjoy.

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• Be smart, consider your exact needs and opt for
  an insurance that will secure your interests and
  those of your family in event when you wont be
  around to provide for them.