You never know what will happen in the future. How your family will survive in your absence? Who will take care of them? If you are really concerned about the well being of your family, a LIC term insurance plan is a must-have.
What is term insurance?
Term insurance is an investment plan wherein your family gets some money if you die during the policy period. However, one thing you should understand. Your insurer will not pay your family or you anything if you survive the policy period. However, many organizations have revised this guideline in recent times. They will pay a certain portion of the amount paid by you in case you survive the tenure.
Benefits of term insurance
- Low premium: The premium that you are required to pay the bank is much less in the case of term insurance as compared to any other insurance plan. You only need to pay one percent of your annual income to get a life cover.
- Financial security: As already stated, there is no certainty about the future. Term insurance would be very helpful in case of an untimely death. This way you make sure that your family would be able to survive even without you.
- Lower rate of claim rejection: The term insurance scheme of LIC has the lowest rate of claim rejection. However, you must disclose correct facts about your income, eating habits, preferences, etc. IRDA has mandated that no insurance provider can claim non-disclosure of fact, after 2 years of the policy commencement.
- Zero brokerage: Brokerage is a recurring expenditure. However, you have to pay zero brokerage with term insurance plans. People who buy term insurance plans online have more benefits concerning brokerages.
- Riders: Riders are additional benefits that come packed with term insurance plans. However, you should buy these riders only if you need them. They can prove to be extra expenses.
To sum up
There are numerous benefits of having a term insurance plan, but the best part is that it helps your family life with dignity even if you are not there to care for them.