Term plan vs traditional insurance policy: Which is better and why |  Personal News – India TV

A Term Insurance plan is a life insurance scheme that aims at delivering family protection even when you are not around. For example, if the policyholder passes away during the policy period due to any uncertain situation, their family will receive financial assistance from the insurance company.  

Term insurance plans offer a horde of benefits and features, allowing the policyholder to tailor the plan to their requirement, budget, and preference. When the term expires, one can either renew it or transform it into a permanent cover. The policyholder may also choose to terminate the plan if not needed. 

Important Benefits Of Term Insurance Plan 

Affordable Premium 

The premium in an online term plan is flexible. It allows you to pay either yearly, monthly, or quarterly depending on your convenience. It ensures you have a hassle-free experience with them. Moreover, one can receive high-value life cover even at an affordable premium. Those who buy a term plan early on in life also get the benefit of paying lower premiums. If you are young, do not miss the chance to pay lower premiums and receive high-value life cover later on in life. 

Payout Of Sum Insured 

If the policyholder is no more due to any unforeseen circumstance, their family will be able to receive the sum insured as compensation. Therefore, it allows them to beat any financial crunch during the absence of the policyholder. As such, they can continue with their lifestyle without any hindrance in between. Moreover, term insurance provides the flexibility for family members to choose when they want to receive the payment. So it can be done on both a monthly and one-time basis at your convenience. 

Whole Life Cover 

The financial crunch is growing each year. As inflation rates rise, the need for financial stability increases too. That is when it is significant to realize why a whole life cover can come at your rescue like no other. An online term plan allows whole life cover. As such, they provide cover up to 99 years. Such a plan thus enables any individual to be at ease about their financial stability and allow their economic anxiety to take a backseat. Such long covers are not available in every life insurance plan. So, you may want to consider this one. 

Critical Illness Cover 

Critical illness can occur anytime, anywhere. Whether you have enough money for that, you have to spend money on it to fix it. If not, you may end up suffering forever or even succumbing to it. If you are suffering from any critical illness, term insurance providers will provide a helping hand to you. So, you can receive the cover and invest the money to pay for the diagnosis. 

Accidental Death Benefit 

In case of the policyholder’s death due to an accident, the online term plan protects your family by delivering life cover as financial assistance. But this is an add-on. If you want to add this to your term plan, discuss it with your insurance provider. 

Terminal Illness Cover 

If you are detected with a terminal illness such as AIDS, the insurance provider will offer a hefty sum for your diagnosis. 

Conclusion 

Term Insurance plans are helpful, flexible, affordable, and effective. If you want to secure your family’s financial future, scout for it today and be stress-free from tomorrow. 

By Richard