It is still surprising that many Indian households lack proper insurance coverage. In fact, it is one reality that stares us in the face, as we navigate the uncertainties of life. India continues to be underinsured, even though more awareness and knowledge has led to people leaning towards insurance in recent years. Term life insurance plans have also attained increasing popularity amongst Indian families and individuals as a result. Here are some reasons why people choose to purchase the same.
Buying Term Life Insurance- Biggest Reasons
Here’s why most people prefer buying term life insurance plan:
1. Term plans offer pure life coverage without any complexities. It is a pretty straightforward premise where the insurance company will pay a sum assured amount to the policyholder’s nominee in case he/she passes away within the tenure.
2. Many people choose term plans since their premium rates are relatively lower than those of multiple other life insurance plans. In fact, younger customers are more likely to get better rates for higher coverage from insurance companies. Why is this so? Because insurers view younger customers as less prone to medical and health risks. Hence, begin as early as you can.
3. Your family can use term plan payouts as a financial safeguard in case of your unfortunate demise in the future. The money may help repay debts, meet household expenses, take care of higher education costs of children, and so on.
4. Most people prefer purchasing term life insurance since they wish to leave behind a financial legacy for their families and children in case they pass away in the near future. At the same time, there is also that element of mental peace that propels these purchase decisions. People want to be stress-free and comfortable, knowing that their families will be financially comfortable even in their absence. It is probably the biggest reason behind these purchases.
5. Term plans are also easier to obtain than some other plans and do not require complex paperwork or lengthy application procedures. Nowadays, the process has shifted online, making it even more convenient for customers.
6. These plans offer handsome tax benefits in the form of deductions (Section 80C) on premium payments. It can add up to decent savings over the years.
7. Premiums for these plans are relatively more affordable (for comparatively higher coverage amounts) than many other plans, which makes them a good fit for almost every household.
8. Term plan coverage amounts can be flexibly increased over the years, with evolving priorities, additions of new family members, and so on.
Hence, these are some of the top reasons why people choose term life insurance plans. They have multiple advantages for not just those buying policies, but also their loved ones. Yet, take some time prior to finalizing your policy decision. Always look at numerous insurance companies and their plans, features, claim processes, premiums, etc. On that note, here’s to ushering in higher financial security for your family with the right term insurance policy.