Finance

4 term insurance benefits for your family

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Life insurance products in the market have increased the insurance penetration in India. According to a data report, approximately 65% of Indians purchase a life insurance policy. Due to the growing need for insurance, there are many insurance products such as term plans, endowment plans, money-back plans, and so on. Amongst these insurance products, term insurance is the sub-subject of life insurance.

What is term plan?

Term insurance is a pure protection plan, which primarily focuses on the financial protection of your family. While death benefits can be an essential element of a term plan, you might not receive survival benefits. Since regular term insurance only provides death pay-out, many of you would not purchase it. If you are looking forward to receiving survival benefits, you should buy a smart term plan. Before you purchase a smart term plan, let’s understand what a smart term plan is in detail:

Unlike regular term plan, the primary aim of a smart term can be to provide you with death benefits as well as survival benefits. A smart term plan can be a complete term policy that can offer new-age features and variants based on your dynamic needs. It not only allows you to receive your entire premium amount but also secures you from several critical illnesses.

Under the smart term plan, you can receive various benefits for your survival in the long run. Therefore, let’s go through each benefit offered by a smart term plan to make informed decisions in the future:

  1. You can receive a comprehensive coverage

When you purchase a smart term plan, you can receive a comprehensive coverage to safeguard your family financially from unfortunate events such as critical illness, loss of income, physical disability, and so forth. However, your coverage needs might change based on your life stage. Therefore, to meet your evolving needs, a smart term plan and increase your coverage as well as incorporate different add-ons. Moreover, you can even opt for a whole life coverage that protects you until the age of 99.

  1. You can opt for add-on covers

Add-ons can be the extra term insurance benefits provided to you on top of your base term insurance policy. With add-ons, you can strengthen your term policy. In simple terms, add-on covers everything that your insurance policy does not offer under a smart term plan. The most usual add-on covers offered by many insurers can be accident death benefit, critical illness cover, waiver of premium benefit, and so forth.

  1. You can cover different diseases

As you grow older, you might be prone to severe health conditions. However, your insurance company might not offer coverage for specific diseases. Under such a scenario, you should have a critical illness cover that can cover the diseases not covered under your term policy as well as ensure the timely treatments of those diseases with proper financial assistance. The number of diseases covered under a critical illness cover can vary from one insurer to another. Hence, read the policy document carefully to identify how many diseases are covered under your term policy.

To sum up, term insurance can be an essential aspect of your life. Since you can reap the death benefits as well as survival benefits, buy term insurance for long-term financial aid in the case of eventualities of life. A term insurance plan with survival benefits can allow you to recover your premium amount, which you have paid throughout the tenure of your term policy. When you get your whole premium value, you can lead a comfortable retirement lifestyle after you survive the term policy. Moreover, you can meet your post-retirement goals, such as exploring exotic destinations, starting a new business venture, pursuing sports activities, etc.

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