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Term life insurance, also known as pure life insurance, is a type of life insurance that guarantees payment of a stated death benefit if the covered person dies during a specified term. Once the term expires, the policyholder can either renew it for another term, convert the policy to permanent coverage, or allow the term life insurance policy to terminate.
Term Life Insurance approaches give high life cover at lower expenses. For eg: Premium for 1 Cr Term Life Insurance Cover could be pretty much as low as 490** p.m. These fixed charges can be paid on the double or at ordinary stretches for the whole strategy term or a restricted period.
Term life insurance guarantees payment of a stated death benefit to the insured's beneficiaries if the insured person dies during a specified term. These policies have no value other than the guaranteed death benefit and feature no savings component as found in a whole life insurance product. Term life premiums are based on a person's age, health, and life expectancy.
Anybody with financial independence should purchase a Term Protection Strategy. This incorporates youthful experts with subordinate guardians, hitched couples, guardians, money managers and independently employed, Taste financial backers, and at times, even retired folks.
If you die during the term of the policy, the insurer will pay the face value of the policy to your beneficiaries. This cash benefit which is, in most cases, not taxable may be used by beneficiaries to settle your healthcare and funeral costs, consumer debt, or mortgage debt among other things. However, if the policy expires before your death, there is no payout. You may be able to renew a term policy at its expiration, but the premiums will be recalculated for your age at the time of renewal. Term life policies have no value other than the guaranteed death benefit. There is no savings component as found in a whole life insurance product.
There are several different types of term life insurance, the best option will depend on your circumstances.
Once you've picked the policy that's right for you, remember to research the firms you're considering thoroughly to ensure you'll get the best term life insurance available.
Hence, individuals who derive any of the three significant benefits associated with term insurance should consider buying such policies. The three significant benefits are – life protection, tax-saving and affordable premiums.
Following is a list of benefits that a term insurance policy can provide you:
