An Introduction to Term Insurance
Term insurance or term life insurance provides financial coverage on an investor’s life for a specific period of time. Term insurance provides significant coverage to beneficiaries, in case the investor dies before the term of the insurance policy is complete.
Term insurance does not provide other profits. Since any savings component is absent, you don’t have to cough out an astronomical sum as premium. Paying only a small amount after regular intervals will suffice to retain the coverage for the duration of the policy.
Term Insurance: Your Best Choice
Wide Coverage: A young person is expected to live many years. Hence, a 25-30 year old person cannot think about providing 1 crore or more through investments, savings or assets to his/her beneficiaries after an untimely death. Term insurance is a low-cost investment choice to ensure some financial relief in the aftermath of the investor’s untimely demise.
Add-Ons: Depending on your circumstances in life, you can add additional plans to your term insurance. Terminal illness, disability etc are some of the most common coverage that you can add to the original plan. Depending on the number and type of added coverage, your premium might go up.
Tax Benefits: The amount paid for coverage will be exempted from income tax.
To clear your doubts, contact our team at Arthavidhi.
