We often think about the best time to buy term insurance and the security that it can bring to the future. To be very honest, whether you are planning to start a family or are working in a big firm, term insurance can provide financial security in terms of a large corpus at your disposal, only when you start early. The best part of term insurance is that it costs much lower than other life insurance products and you have to pay only a small percentage of your total annual income. The biggest benefit of term insurance is that it provides more coverage than your current yearly salary. Hence, when it comes to a term insurance, don’t wait until your late thirties to invest. Lock your premium amount with term insurance now and offer the best risk cover to your loved ones.

What Does Term Insurance Cover?

Term insurance is a life cover plan that grants coverage for a fixed period to secure the family during certain uncertainties. Within this period if the insured dies, a death benefit is provided to the family members, which means it offers pure life cover. However, if the insured survives during this tenure, no payout is made. It is a basic plan which does not involve profits or a saving component. The policyholder can easily opt for larger life cover at low premium rates. But this doesn’t imply that the only benefit you get is the sum assured on death; it also provides critical illness coverage which can be opted for or can be availed as a built-in feature. You can also choose accidental death benefit on top of the existing plan of term insurance. There are very few companies which have started providing it as a part of the policy. Apart from these, few insurance companies also offer permanent disability feature under the term insurance plan. It entirely depends on you – what type of add-ons you need in the term insurance and what type of term insurance you opt for.

What Is The Best Thing About Buying Term Insurance?

Do you really need to wait until the 40th birthday to buy a term insurance policy? Here is why you should go for a term plan right away. You will be glad to know that you can get the best financial protection through term insurance at a most affordable premium and it will keep the family secured even if something happens to you. Another great thing about it is that the earlier you invest in a term insurance the better is the saving on the premium. When the money is invested in the right plan, it also provides higher benefits than the total premium paid. Since it is pocket-friendly and affordable, you can go for higher cover without any potential risk. You can easily secure the family’s financial future by buying a term plan. In these low premium plans, the entire premium is used to meet risk coverage and administrative costs. Therefore you will not get anything in return on surviving the term, as there is no saving option in this premium. However, if in case of death within the term, the sum assured will be paid to the nominee. The premium of the term plan entirely depends on the age, the tenure of the plan and the sum assured under the term plan.

Get one as soon as possible, as it can be your best financial investment decision and can aid you and your family against various viable risks in the future. However, while buying a term plan, do not merely calculate the premium amount. Don’t just believe in the insurer’s high claim ratio, as it will not necessarily grant the payment of a claim. Also, do not fall into the pitfall of buying it for the longest tenure possible because you’ll need it only until retirement age. After all, we no longer remain a provider for our family at such an age. We hope you’ll no longer need to depend on the broker to translate the benefits of investment term policy while shopping for insurance. It will fit into both your long-term financial strategy and your present budget plan because of its affordability and viability.