Why Term Insurance a Necessity And Not a Choice?

Life is short and one can never foretell what the future holds. To make sure that your family is financially secure even after you are gone, you need a Term Life Insurance Policy!

Uncertainties are an undeniable fact of life. This makes it necessary to take appropriate precautions for safeguarding yourself and your family members under the unknown circumstances. Term Life Insurance is one such decision which makes us less vulnerable in those adverse conditions which are unpredictable in nature. It is an important step that assures financial security of a family.

In this blog, we would be addressing this prominent issue pertaining to financial security, with the best term insurance plan.

Its absolutely necessary nature makes it obligatory for you to familiarize ourselves with the very concept. This will help you to choose the best term insurance plans suiting your requirement.

It can be defined as a life insurance plan. It is considered as the most simplified death benefit insurance plan which is not associated with any money back or maturity benefits. Another factor which has made it quite popular is the minimum cost of acquiring the policy with maximum benefits accrued to the policy holder. As per financial experts if you do life insurance comparison then you'll find out that the, best option out of all the existing insurance plans existing in the market because of the highest assured amount with respect to the low annual premium incurred by the policy holder.

Now, Let’s look at some of the noteworthy facts about term insurance that make it a desirable plan amongst all other insurance plans. They include the following:

• Lesser Rate of Premium - The policy holder does not have any additional investment expenditure in the insured amount apart from the premium amount. This makes it considerably lower than any other insurance plans.

• Assurance of Financial Security - It is a quite powerful tool to tackle the financial liabilities of the family in case of unfortunate death.

• Premium - To have a premium life you need to pay premiums. It does not increase every year unlike health insurance: once fixed at the time of purchase of policy, the premium is not subject to change every year. So its advisable to take a term insurance as early in your life as possible

• Lesser Possibilities of Claim Rejection - As per the current regulations by Insurance Regulatory and Development Authority (IRDA), no insurance company is permitted to claim non-disclosure of facts after the policy remains effective for a duration of two years. This minimizes the probability of claim rejection.

• Additional Benefits - These are termed as riders that are provided in order to satisfy the requirements of the policyholders of the term plan. They can be utilized by incurring a nominal fee. Some of them can be taken along with term plans are critical illness, death due to accidents, partial or permanent disability etc. You can leave the

Apart from selecting the best term plan for insurance, the individual must prefer that insurance company which has a higher claim settlement ratio while taking this crucial decision. It indicates the proportion of claims that it has honored out of the total outstanding claims.

Majority of insurance companies undertake the calculation of Human Life Value in order to determine the requirement of a Life Insurance Plan. This exercise is executed on the basis of multiple parameters including the income, expenditure, liabilities and investment of the individual. Other factors which have a considerable impact on the calculation of Human Life Value are Inflation Rate and the number of years for which the policy holder has to provide the income to one’s family.

We hope that through this blog, we have been able to highlight the necessary reasons for opting the best term insurance policy.