Convenience refers to the state of being able to proceed with something comfortably and without many issues. How does convenience relate to a term insurance then? Well, a term plan has convenience written all over it. There is convenience when it comes to its features, convenience when it comes to buying experience online and of course convenience if there is a need to claim the policy. Here are some of the major reasons why a term insurance plan is convenient.
- Lower Insurance Premiums
If you are not already aware of the fact, a term life insurance has one of the lowest premiums in the country as of now. When you factor in the huge sum assured that you get access to, the premium sounds even sweeter. For an example, it is possible for a 30 year old individual to get a sum assured of Rs.1 crore by paying premium in the tune of INR.5500-6500on a yearly basis. None of the other insurance policies can match the sum assured or low premium for that matter.
- Financial Stability
Unlike most other insurance products, a term insurance does not promise savings or returns after a certain period of time. In fact, it just ensures that your loved ones are not bound by financial obstructions to continue with their life in your absence. A term insurance allows them to fulfil their various needs. However, one must review the policy at regular intervals and if needed increase the sum assured.
There is a great deal of flexibility that you can have with your term insurance. It starts with the option of buying either an online plan or offline plan. You have the option of selecting a sum assured that is representative of your requirements. As a potential policy holder, you also get to choose the term duration for the plan. Apart from all of these, you can also choose to add riders to make your term insurance even more effective.
Everyone has different needs and expectations from their insurance policies. If due to some reason or the other you are not happy with the term insurance plan, you can opt for additional riders to enhance the value of the base plan. A rider brings along additional capabilities for your term plan at nominal costs. Critical illness, waiver of premium and accidental death benefit are some of the most sought-after riders in a term insurance plan.
- Less Rejections
One usually buys an insurance policy as a backup plan for something. Imagine if your backup plan also fails, you can be in quite a spot. However, with term insurance there is less probability of the same. If your plan has been active for more than 10 years, there is low probability of the claim being rejected. Similarly, thanks to IRDAI, insurers cannot reject a claim under the clause of non-disclosure of facts if the policy has been active for at least two years.
How Time Saving Is Term Insurance?
Seeing the popularity of the purchase of insurance policies from their online platform, almost all the insurers have ensured that their term insurance is available online. Buying your term insurance online is not only convenient but also saves you a lot of time.
For starters, you do not have to visit any branches or speak with insurance agents, saving you a substantial amount of time there. The application forms of online term plans are optimized and require you to fill up only mandatory fields, thereby ensuring a quicker process. Once you make the payment, the entire processing is also faster and you will receive your policy documents also relatively earlier. Thereby, saving you time at each and every step.
How Well Placed Is Term Insurance?
A term insurance plan should be in your portfolio to counter all the unknowns that life insurance can throw at you. Given the fact that a term plan is incredibly affordable to maintain, it should not be all that difficult after all. A term plan for Rs.1 crore for an individual who is in his/her 30s and does not smoke will probably cost about INR.5500-6500 per year.
You can buy your term plan by paying the premium at a single shot, yearly, half yearly or even quarterly (depending on your insurer). When you break down the premium into a quarterly time frame, it becomes even more affordable.
Keeping everything in mind, a term insurance is a smart investment move to secure the financials of your family in your absence.