What is Term Insurance?
Term insurance is a type of life insurance policy that gives financial protection to your family if something unfortunate happens to you. It is a pure protection plan where you pay a premium regularly for a specific time period (term). If you pass away during this term, your nominee gets a lump-sum amount called the sum assured. If you survive the term, there is no payout.
Benefits of Term Insurance
1
Affordable Premiums
Term insurance premiums are lower compared to other life insurance plans. This means you get high coverage for a small amount.
2
Financial Security
It ensures your family has financial stability to cover expenses, clear debts, or meet future needs like education or marriage.
3
Tax Benefits
When Should You Take Term Insurance?
- Early in Life: The best time to buy term insurance is when you are young. Premiums are lower for younger policyholders, and as you grow older, the cost increases.
- Life Milestones: Consider taking term insurance when you have financial dependents, such as after marriage, having children, or when you take loans like a home loan.
- Future Planning: If you want to secure your family against financial burdens in your absence, term insurance is a must-have.
In short, term insurance gives peace of mind, knowing that your loved ones are protected financially even if you are not around.
