Many types of insurance are present in the market and very difficult to choose with one insurance scheme in India. The cheapest form of life insurance offering the death benefits to the beneficiaries of the policy holder is known as the term life insurance.
Need For Term Life Insurance:
People must have browsed through various kinds of life insurance. Term life insurance is way above the rest. In India slowly people are showing signs to take up this Term life insurance. People in India live on a limited budget, for a particular time period.
Types Of Term Life Insurance:
There are various kinds of term life insurance available in the market. Some of the interesting concepts of the term life insurance are as follows:
Guaranteed Level Term Life Insurance:
In simple English, a guaranteed level term life insurance is insurance product/services offering the insurance protection for a particular time. Available in 10,15,20,25 year term periods.
Annual Renewable Term Life Insurance:
A unique kind of term life insurance, where in the plan/policy can be renewed on a yearly basis. As the insured person gets aged, premium will rise over the period of time.
Return Of Premium Term Life Insurance:
A unique term life insurance having a condition, playing a vital role in refunding the life insurance premiums, when the term period ends is known as return of premium term life insurance.
Decreasing Term Life Insurance:
A spectacular life insurance, offering death benefits, getting reduced at a pre-determined rate is known as the decreasing term life insurance.
Modified Term Life Insurance:
A unique policy using various alternative payment structures to normal life insurance, offering the same level of protection is the modified term life insurance.
Advantages of The Term Life Insurance:
Major advantages of the term life insurance are given below as follows;
- Premium of the policy will be definitely lower than normal type of insurance.
- Very easy to analyse and understand.
- Required to meet the specific financial obligation, like repayment of loan.
- Many term policies can be converted to cash value insurance, if the insurance plans and the policies change.
- It is said to be very flexible, and can also select years ranging from 3 years to 10 year options.
- This kind of insurance is very less expensive, compared to normal insurance.
- Superb plan for young and single families in India.
- Helps in offering peace of mind, without putting any pressure on your wallet
Disadvantages of The Term Life Insurance
Some of the disadvantages of the term life insurance are given below as follows:
- Term life insurance is offering coverage for limited period of time.
- Renewals of term policies are rare.
- Premium rates are guaranteed until the end of the term like 5,10,15,20 years.
- If you are experiencing health issues, term life insurance is not your cup of tea.
Hence I would recommend people in India to have a good term life insurance.
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