Term Plan Insurance: Things to Keep in Mind Before Making a Purchase

No one has seen the future, so no one knows what it holds for us. If you are providing for your family now, doesn’t mean you always will. As much as we hate to admit it, life is uncertain.

That’s why, it’s essential to be prepared for it by investing in term plan insurance. It provides life coverage to the beneficiary by offering a death benefit at the event of the insured’s untimely passing. Under a term plan insurance, the sum assured is paid to the nominee to help them manage the financial repercussions of the insured’s passing.

Term plan insurance falls under personal financing and can prove to be a powerful asset. These can be purchased by individuals planning on financial independence for their family. It could be a newly - married couple planning their married years ahead of them or it could be parents ensuring a financial net for their kids in their absence. Even as young adults, individuals buy term insurance plans for future financial security.

Features and Benefits of Term Plan Insurance

Term plan insurance has a lot to offer with its diversified features and benefits. Here’s a brief look at things to keep in mind before making a purchase.

• Affordability: Term plan insurance is widely popular because they have far more economical premiums. Consequently, when you invest in a term insurance plan, your returns will be greater than the cost of the policy.
• Tax Benefits: Under Section 80C and Section 80D, tax benefits can be claimed on term insurance premiums. Under the terms of the policy, the assured sum, or lump sum payout is tax-exempted and is subject to Section 10 (10D) of the Income Tax Act.
• Critical and Terminal Illness Coverage: Term plan insurance offersprotection against life-threatening diseases and illnesses. In the need of the hour, the beneficiary of the policy can get the medical bills covered by the insurance company.
• Higher Coverage:  In comparison to other traditional life insurance plans, term plan insurance provides higher coverage. You can even opt for Rs.1 Crore coverage or more through term plan insurance at cost-effective annual premiums.
• Easy Purchase: The process of purchasing term life insurance is rather easy. The is no need of going through tiresome paperwork formalities. You can either buy them offline through an agent or more commonly accessible online.

Made your mind to buy a term plan insurance? If yes, we highly recommend you to try your hands on a term life insurance calculator.

What is a Term Life Insurance Calculator?

A Term Life Insurance Calculator is an online tool used to find a suitable term plan insurance for an individual according to their requirements. It is an easy and free-to-use tool with a user-friendly interface. One has to enter the gender, age, the amount of life coverage they wish to purchase, and whether or not they smoke or consume tobacco.

Term Life Insurance Calculator is also used as a comparison tool to search for the best-suited term insurance plan for an individual. If you wish to safeguard your family and your future from unforeseen emergencies, a Term Life Insurance Calculator is the way to go.

How to Use a Term Life Insurance Calculator?

Term Life Insurance Calculator can be used to calculate premiums in just a few simple steps-

Step 1: Search for a Term Life Insurance Calculator online.

Step 2: Enter your details - gender, do you smoke/consume tobacco, age, and the preferred amount of coverage - and submit.

Step 3: Enter some additional details -

Your full name

Gender

Date of birth

Phone number

Your salary in lakhs

Step 3: Click on Submit/View premium and the premium will be displayed on your screen.

Additionally, you will have to choose -

Cover till what age (Max. 85 yrs)

Pay till age/maturity

Mode of premium payment - monthly/annually

Step 4: Selection of add-on riders(optional). These are some of the most common riders available:

Critical illness

Return of premium

Accident cover

Waiver of future premium

Step 5: The last step offers you various term plans for you to choose from and secure your family!

For example, you are a 25-year-old healthy, non-smoking female opting for a term life insurance coverage of Rs. 1 Crore, then in this case you would have to pay approximately Rs.882 monthly.

Benefits of Using Term Life Insurance Calculator:

• Comparison of Best Available Plans: Term Life Insurance Calculator as a tool helps in comparison of the best-suited term insurance plan for an individual. You can weigh the premium rates for high coverage plans offered by different companies and get a good deal for yourself.
• Saves you Time: Term Life Insurance Calculator helps you tremendously in saving a great deal of time and unnecessary troubles when it comes to purchasing life insurance.
• Avail Discounts: Purchasing term insurance plans online can help you avail discounts. Many companies offer the purchase of policies online at discounts. It is suggested that you should compare and choose the best-suited plan for themselves.
• Aids Financial Planning:  Knowing the premiums one has to pay regularly will allow them to plan their finances accordingly. Therefore, you can choose a plan that will fit your budget with a term insurance calculator.

You can live a stress-free life if your family's future is safe. Purchasing insurance will ensure that. Choose a term insurance plan today, it’s just a click away!

Author Bio: Vinod Gill is a writer who specializes in writing content on Finance and Banking subjects. He is a Digital Marketing Consultant, Blogger, and Co-Founder of Balloondecorationz.

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