Why Term Life Insurance?

Term life insurance is one of the most handy, useful and affordable life insurance products available today. With extremely low costs and extremely high coverage, it makes all the sense in the world to buy a term plan, no matter what your life situation is. Whether you are a single, young entrepreneur, a family person with kids, a person with loans and mortgages or a healthy middle aged person, a term plan would always be a suitable life insurance policy for you. With many advantages and almost no drawbacks, you can secure the future of your dependents with a term plan and rest assured that if something unfortunate were to happen to you, they would not be left in a financially challenging position.

What are the advantages of term life insurance?

There are many advantages if term life insurance. They are:

  1. Low cost – The greatest benefit of a term plan is that allows you to buy a substantial amount of life insurance at a very low cost. This makes it possible for people of all financial levels to have life insurance.
  2. Flexibility – Since term plans are bought for a specific term, you can choose for how long you want to stay covered and how much you want the sum assured to be. For example, if you have your 10 year old son as a nominee, you would want to purchase the policy for 15 years, because surely by the time he is 25, he will be financially independent. However if you die before that, he may need financial assistance.
  3. Fixed premium – No matter what length you take the plan for, your premium will be fixed throughout, and so you don’t have to appear for medical tests, etc during the policy tenure and have the premium increased.
  4. Riders – A term plan can be customized by adding additional riders such as waiver of premium, accidental death, etc.
  5. Return of premium – You can offer to pay higher premiums and opt for a return of premium plan, where at the end of the policy period, the premium would be returned to you if you survive.
  6. Easily available – Most term plans are available online and so buying them becomes extremely simple. All you have to do is log in, select the plan you want, and buy it instantly.

What are the disadvantages of term life insurance?

Broadly speaking, there aren’t really any disadvantages of a term plan. The cost at which you get the cover is so good that everything else becomes negligible. However, the only problem with term insurance is that you cannot surrender the plan mid way. So once you purchase the policy, you have to continue with it. You obviously have the option of lapsing the policy by stopping the premium payments. However you cannot get a surrender value and once you discontinue, you lose the cover as well as the previously paid premiums.

So should I buy term insurance?

Of course you should buy term insurance! From the above mentioned points, we can clearly see that the advantages overwhelmingly outweigh the disadvantages and so you must most definitely get a term plan today if you haven’t done so already.