Term Life Insurance: The Best Option For Long-Term Financial Planning
We have already talked about term life insurance in our previous article, so I am not going to talk about term life insurance in this article.
There are a lot of people who think that term life insurance is the best option for their financial planning. You must be wondering why I am saying this. Why not take a loan or invest in a gold or mutual fund. Term Life Insurance;All these options will let you save money in future, but what if you lose your job or you get sick or have an accident. In such a case, how will you cover the loss?
I would say term life insurance is the best choice for your financial planning because of its affordability.Term Life Insurance; If you are earning less, then you will be paying less for your life insurance.
Let’s understand the term insurance in detail.
What is a term policy?
It is the type of insurance where you will pay premium only for a particular duration of time. In case, you lose your job you can cancel the policy, and no longer get charged for your insurance. If you get diagnosed for a major health issue like cancer, then you will be paying the premium until you die. The most popular term insurance policy is the whole life policy.
Benefits of a term policy
1. Affordable:
If you don’t have any savings, then you should opt for a term policy. You will be paying a small monthly premium, and at the end of the term, you will receive a lump sum which you can use for any purpose. You will also get the benefit of cashless hospitalization and you won’t pay any extra charges.
2. Easy to cancel:
Once you cancel the policy, then you don’t have to pay any additional premium.
3. No medical exam needed:
If you have taken a loan to buy the life insurance, then the lender will insist for a medical exam. So, you will have to wait for your medical checkup before getting the insurance policy. In case of a term policy, you will not have to attend the medical examination.
4. Cash value:
The most important advantage of a term policy is that the cash value is given by the insurer. You can redeem the cash value whenever you want.
5. Flexible payment options:
You can choose the installment option for a term policy. You can also choose a fixed payment option.
6. Guarantee of income:
If you have a job, you will get a monthly salary, and in case of a term policy you will get the guarantee of monthly income.
7. A cheaper option:
As the premium for a term policy is lesser than that of a whole life policy, it is a cheaper option.
Term Life Insurance: The Best Option For Long-Term Financial Planning
Life insurance is an investment that guarantees an amount to someone else in case of your death. You can use life insurance policies for covering the financial responsibility if something happens to you.
While there are different types of life insurance policies, term life insurance is the easiest one to buy as well as the easiest to pay.
Term life insurance provides cover to the policy holder for a fixed period of time. The premium rate charged for term insurance depends on a number of factors like the age of the policy holder, the sum insured, and the duration of the policy.
Here are some advantages of buying a term insurance policy:
also read this: Get Free, Up-To-Date Safety Insurance for Your Home and Business: New tips 2022
Payment:
It is much easier to pay monthly premiums as compared to yearly premiums. There is no need of paying annual renewal fees.
Tax Deductible:
If you have bought a term insurance plan, then you can claim the premiums as a deduction in the tax returns.
No medical exam:
You don’t need to undergo any physical exam to renew the policy as it is a pure term insurance plan.
Conclusion:
If you have a low income, a term policy is the best option for you. It is an affordable and the easiest way to save money. I would recommend you to go through the terms of the policy and also read the policy documents thoroughly. So that you will know
