Having saved some funds is important as it can feel like having nothing to fall back on in times of an unexpected event. Likewise, there are times in an individual’s life when life might throw a curveball, but having term insurance at that moment gives you everything. These insurance plans are usually for a fixed period and have certain benefits for you today and tomorrow. Today, it’s the peace of mind regarding financial security that is the most concerning.
Let’s learn about how term insurance plans add financial stability to your life.
Are You Aware of What’s Term Insurance?
A simple and popular coverage, yet one of the most neglected ones. Yes, almost everyone knows about term insurance but not many buy it. Here is some detailed information on term plans that you may refer to before purchasing:
- Affordable Coverage: One thing that definitely makes term plans popular is their budget-friendly premiums. If you compare it to other types of life insurance, they offer substantial coverage without putting a strain on your current finances. This makes it easier to secure your loved ones’ future without sacrificing your present goals.
- Flexible Coverage Options: Term insurance is available in a variety of term periods. This may change, typically ranging from 10 to 30 years. This flexibility allows you to tailor the coverage period to your specific needs. Whether it’s for your family’s protection during your child-rearing years or to ensure coverage for unpaid dues.
- Death Benefit Guarantee: If the insurance holder unfortunately passes away during the policy term, the beneficiaries shall receive a predetermined sum assured. This financial cushion can help cover immediate expenses, pay off debts, or even secure your family’s future education needs.
Types of Term Insurance Plans to Explore
As the name suggests, term insurance is a coverage plan for a fixed term, and it is available in several types. Below are a few types of term plans, other than the standard one, that are worth exploring:
- Whole Life Term Insurance
- A whole life insurance is going to provide you coverage throughout your life, up to the age of 99.
- Apart from the insurance benefits of these term plans, they have a savings component. This means you get to make some additional savings and build cash value.
- You can access this cash value anytime through borrowings in case of an emergency or choose to withdraw it.
- The monthly or yearly premiums that you’ll be paying for them are fixed throughout the policy’s term.
- Whole life term insurance plans may cost you more than regular ones because of their added benefits.
- Convertible Term Insurance
- This term insurance is not majorly different from the standard plan. It is offered by flexible insurance providers.
- This plan allows you to switch from standard term insurance to whole-life coverage, in case you change your mind in the early years.
- For instance, you purchased a term insurance plan for ₹55 lakhs at the age of 27, and after 3 years, you realize that it would be better to switch for the whole life term.
- Increasing Term Insurance
- An increasing term insurance plan is an interesting term insurance that allows you to raise the death benefit throughout the policy term at predetermined points in your life.
- This is an interesting approach to save for inflation and ensure that your loved ones receive a sufficient payout for their future.
- The rate of increase in the death benefit is fixed at the time of policy purchase.
Choose a Term Insurance Plan for the Future Today!
Planning ahead for life’s uncertainties is crucial as we know it, and term insurance plans have a major role to play in it. Once you’re aware of its benefits and types, the next big thing is to pick your insurance provider. While there are many out there, Canara HSBC Life Insurance is known for its flexible term plans. They have a variety of plans under the umbrella of term insurance plans, and they even offer it for groups, which is suitable if you’re running a business.
So, hurry and visit their official website and go through the terms of plans available online. Put your money in the right place for the future today!