Benefits of life insurance term plan
A life insurance term plan is an insurance product that provides financial shelter to the beneficiary of the policyholderfor a limited period of time. The beneficiary, who normally is a family member, can claim death benefits in case of demise of the policyholder from an insurance company. This is because the best life insurance term plans are designed to protect the family of a policyholder financiallyduring the term of the policy.
The payout of the benefits can be lump-sum, monthly or a combination of both depending on the requirements. This makes term insurance plan one of the simplest ways to financially secure ones family in your absence.
Why buy a Life insurance term plan?
Apart from prudent financial planning, below are some of the most common reasons why you need an insurance term plan
• It helps to ease disruption caused by untimely death to the policyholder due to natural or accidental causes.
• It provides tax benefits during payment of premiums and also when receiving payouts
• Insurance provides for ones family’s future needs in the absence of the bread earner
• Although not a replacement to the lost loved one, the bestlife insurance term plans provides a soft landing for the beneficiaries.
It offers the support that your family needs easing their burden and enhancing your legacy as a provider even after your demise.
What are the benefits?
There are numerous benefits to having a life insurance term plan:
a) Death benefits paid in lump-sum can be used to cover financial liabilities
b) Financial support is provided to the policyholders beneficiaries in form of lump-sum or regular payments over a period of time
c) It is very affordable as premium payments are lower than other policies.
d) Premiums paid towards the insurance plan provide for tax benefits therefore helping you save.
The best life insurance term plan policies are also quite simple and easy to understand as compared to other policies.
Who needs life insurance term plan?
1) Anyone with an income and has dependents should apply for a life insurance term plan online. However, to ensure that this is the right policy it is advisable to speak to an insurance agentand compare life insurance term plans before purchasing a policy.
2) As a good financial planning practice, all income earners should have a plan to deal with future uncertainties.