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.
What are the benefits?
There are numerous benefits to having a life insurance term plan:
Death benefits paid in lump-sum can be used to cover financial liabilities
Financial support is provided to the policyholders beneficiaries in form of lump-sum or regular payments over a period of time
It is very affordable as premium payments are lower than other policies.
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.
How much life insurance term plan is needed?
This is dependent on a number of factors, but as a rule it should provide 7 to 12 times your gross annual earnings. Other factors on how much life insurance term you require include
The size of your family and the current insurance costs. Life insurance term plan can help you cover your family for a lot less than you may be currently paying
Income generated as the bread earner. This policy allows you to do more with less and is ideal for large families with low income.
Beside these factors, a little research can provide other life insurance term plan online.