Gone are the days when term insurance plans only provided you with a death payout for the financial well-being of your family. Since many of you felt that term insurance plans could be an expensive purchase solely for death benefits, the sale of term insurance plans was significantly reduced. According to a report, only 5% of the Indian population bought term plans. Therefore, many insurance companies have launched a complete term policy that can offer death benefits and survival benefits under a single plan. The survival benefit comes as an option termed as Return of Premium in the new age term plans. Besides, these top four benefits of term insurance plans mentioned below can make it a worthy purchase:
1. Coverage
Under term insurance, coverage can play an essential role. When the term plan was introduced, a life cover was solely crucial only for your family members. Today, you can protect yourself and your loved ones with a life cover received from your selected term plan. While the life cover can safeguard your family’s financial security in your absence, the life cover received after the maturity date can let you lead a comfortable life after retirement. Moreover, you can increase your term coverage after crossing specific milestones, such as getting married, planning to have kids, etc.
2. Premium
The traditional term insurance plans were known for their affordability in the market. As term policies have evolved, the cost has subsequently reduced. The primary reasons for lowering the prices of term insurance plans can be increased market competition and a rapid premium rate improvement. A new-age term insurance policy can be relatively cheaper as well as customer-friendly. Hence, buy a new-age plan to reap the evolved benefits to match your dynamic financial requirements at a competitive premium value.
3. Payout option
A new-age term plan can give you and your family a financial payout. While the money obtained by your family in your absence can be termed a death benefit, the amount you receive when you survive the term policy can be known as maturity benefits. Under new-age term insurance plans, you can choose between the following types of payout options:
- Monthly payout
You can receive a monthly payout for a specific duration.
- Lump-sum payout
Your nominees can obtain the sum assured value you chose when purchasing a ULIP policy.
- Monthly+ Lump-sum payout
Your insurer can pay the death benefit in a lump sum and monthly installments.
4. Variants
Under new-age term insurance plans, you can choose between different variants. Your insurer can typically provide multiple variant options to match your evolving needs. Moreover, these variants can allow you to customize your term insurance policy. Although the variants can differ from one insurer to another, let’s go through the most common types of variants available by insurance companies:
- Whole-life coverage
- Joint coverage
- Increasing cover
- Child education cover
5. Online presence
The online presence of term insurance policies has made many lives easier. Gone are the days when you might opt out of an insurance product due to a hassle-free and time-consuming process. Online term insurance plans offer minimal premiums as well as relaxed underwriting rules. When you buy term life insurance online, you should submit the relevant details, pay the tip, and make the final purchase. Besides, there can be less involvement of paperwork or documentation under an online term policy.
In a nutshell, a new-age term plan has recently been launched in the insurance market. Although you might be skeptical about the purchase, the new-age features can ensure your convenience, affordability, and transparency. Therefore, see that you compare different market options and use a term insurance calculator before making the final purchase.
