Insurance is a major financial investment that people must make early on in their lives to ensure financial security for the rest of their lives and for their dependents as well. Many different kinds of insurance policies are available for people to safeguard the future and that of their loved ones, including plans that allow for savings alongside providing coverage.
Many investment plans also enable people to opt for coverage alongside ensuring high returns on the securities they choose to ensure in. However, out of the many different options available in the market for those looking to insure themselves and ensure the future safety of their loved ones, term insurance has fast emerged as the best and most viable option. This is owing to several reasons, five of which you can read about below.
The premiums on insurance plans are decided in a way that the plan provides maximum benefits to the policyholder’s death upon their untimely demise. Premiums can be paid on monthly or annual intervals, and will generally add up to a considerable sum that will guarantee the financial security of the policyholder’s nominees for the future. However, in the case of term insurance plans, premiums are considerably cheaper as compared to other insurance plans. With term insurance plans, you are guaranteed an optimal sum assured for the benefit of your dependents even with affordable premiums. The iSelect Star Term Plan, offered by Canara HSBC Oriental Bank of Commerce Life Insurance, is a great example of how an affordable term plan can guarantee extensive coverage for meeting your family’s future financial needs.
The thumb rule for deciding how much your sum assured should be for adequately covering your family’s future financial needs is a minimum coverage measuring 10 times your annual income. This amount is considered adequate for meeting future financial requirements of the family, even after accounting for inflation. Term plans are the only kind of insurance policy that can ensure that the adequate coverage is accounted for in order for your family to comfortably live and thrive, even if you are no longer around.
3.Complete Future Financial Security:
Most insurance plans can ensure that the family is comfortably looked after for a while after the policyholder’s death. However, with a term insurance plan, you can guarantee that the family is not just comfortably looked after but also has enough funds to pursue their own individual goals. For instance, you can ensure that your children have enough to comfortably pursue higher education and even leave enough for them to get married in style. Regardless of their dreams, with a term insurance, you can guarantee that they have enough to fulfill them all without having to worry about monetary implications.
4.No Savings Components:
Owing to the vast plethora of life insurance policies available in the market, there are several options that potential policyholders can choose from. Many policies offer a range of benefits including death benefit and maturity benefit which allows policyholders to get their sum assured back in case they outlive the term of their policy. However, these policies cost more since there is a savings element to the policy. With a term insurance plan, the policyholder is only assured of a death benefit which is paid out to their family upon their death. This ensures that the entire sum paid towards premium is later settled as the sum assured. Thus, by having no savings component, term insurance policies ensure the maximum returns in terms of sum assured.
5.More Options for Add Ons:
With many life insurance policies, there are already several in-built riders that come along with the main policy instrument. With a term policy, you have the freedom to choose with adds on you actually require and pay only for them. A term plan allows you the freedom to customise your plan in exactly the way you want it, and thereby maximise the sum assured due to your family when you are no longer around. The iSelect Star Term Plan, offered by Canara HSBC Oriental Bank of Commerce Life Insurance, lets you enjoy the benefit of additional riders through add-ons such as the Child Support Benefit, Accidental Death Benefit, Accidental Total and Permanent Disability Benefits.
A term insurance plan, in comparison to other life insurance instruments, offers much more flexibility and is significantly cheaper. You can easily buy a term insurance that matches all your requirements, such as with the iSelect Star Term Plan, available on Canara HSBC Oriental Bank of Commerce Life Insurance.