Life insurance, the most secure and reliable plan for your future saving and any bad happening. The concept of insurance was incepted a long time back by Chinese companies when people who use to go for work out of the stations were secured by an amount after death. This amount used to get deducted from their salary and use to be paid later if anything bad happens to them. The amount used to be transferred to their family or the peers those who left behind after the death.
Life insurance has become somehow a necessity to all those people who are newly married, young people and retired persons. There is no preferred age of taking life insurance. You just need to pay the premium that will be counted for your life insurance amount. Usually, life insurance carries an interest rate with them and that is more than any FD or RD of any bank. People generally ask” what is term insurance?
Types of life insurance:
There are different types of life insurances available in the market. It includes:
- Term insurance
- Whole life policy
- Endowment plans
- Unit-linked insurance plans or ULIP
- Money back policy
All these types of insurances have their own benefits and premium. Term insurance is the most reliable and opted option among all.
What is term insurance?
Term insurance is one of the most opted types of life insurance. It is a secure and most reliable type of life insurance. As the name says this term insurance is for a particular term subscribed by you. Not like other life insurances where the amount is only paid after death in the term insurance the amount is either paid after death or after the death of the completion of the term. Term insurance could be calculated through term insurance calculator that is given by many renowned companies. Term insurance makes you financially independent and secure. It has many benefits over any types of fixed deposits in the bank. These days there are many companies those who deal in term insurance. You can also subscribe to top term insurance online. You can compare several companies online through their solvency ratios and claiming ratios.
Benefits of term insurance:
Tax benefits: this is one of the major after benefits of taking any term insurance. Under section 80-c of the government, a holder carries a special right against taxes paid. also, your family gets extra benefits under section 10-D in case of any misfortune event.
Benefits of long run: term insurance is a future investment. After retirement, you need a peaceful and happy life and for that, you need a solid amount of money. Term insurance initiates the habit of saving in a person and these savings are helpful later in life.
Accidental death cover: Life is unpredictable. It can trait you any time and anywhere. If in case any accident happens and you lose your life, it’s hard to cop up that situation especially by your family and you also. That is why you must have accident and disability cover
Hence, there is no surprise in the fact that term insurance is one of the most practical and commonly
used by many people.