If you have visited any financial advisor, then there are 90% chances that he/she must have advised you to buy a term insurance plan. Term insurance plans are the most recommended insurance plans for securing your loved ones from any financial burden in your absence. These plans are designed specifically to protect the family of the policyholder against financial crisis in case of the untimely demise of the policyholder. The policy’s tenure is fixed. Hence, it is called a term plan. Term insurance policies are made available at the cheapest rate of premiums compared to other life insurance policies.

A term insurance plan is the purest form of life insurance. It is also called a pure life insurance plan because term insurance plans provide cover against death only without any savings or investment components.

Term insurance plans come with various features and benefits, and we are sure you are well-aware of a lot of them. In this article, we will see some must-know facts about term insurance plans that will help you to understand them better.

1. Term insurance plan solves the direct purpose – There are several life insurance plans offered in the market that are gaining popularity like ULIPs, endowment policy, moneyback policy, and many more. These plans come with various components tagged along with life insurance like savings and investment. However, if you are looking for a life insurance plan that solves the main purpose of providing coverage to your family in your absence, then term insurance is the best solution. It comes with only the death benefit.
2. Term insurance covers up to 85 years of age – You might already know that a term insurance plan can be bought as early as in the early 20s and as late as in 50s. However, the sooner you buy, the more benefits you can receive. Term insurance plans offered today provide cover up to 85 years of age, keeping in mind that a lot of seniors prefer working in their 60s even after retirement.
3. Term insurance comes with the option of payback premium amount – Many people refrain from investing in term insurance plans thinking that there is no benefit of survival. Whereas, other plans with savings and investment components offer a benefit of survival and provide profit in various ways. Though what is a lesser-known fact is that there is a type of term insurance plan that pays back the paid premium amount in case the policyholder survives during the policy tenure. This plan is known as a term insurance plan with return of premium.
4. Term insurance plans allow conversion of riders – With changing circumstances requirements related to the life insurance change. Also, the vulnerabilities to risks change with age. All such factors affect the life insurance benefits you receive. Therefore, it is necessary that the plan you choose allows you to make changes in it depending on your current requirements. Riders are offered on term insurance plans to cover specific risks. Term insurance plans allow you to convert the riders you choose from one option to another to enhance the policy coverage.
5. Buying term insurance online offers more benefits – Buying a term insurance plan online can prove beneficial in many ways. The first advantage is the comfort benefit. With the online buying option, you can research, compare, and buy a term insurance plan from the comfort of your home, that too, with a hassle-free process. The next major benefit it offers is making the plan more cost-effective. The online procedure of buying excludes the cost of intermediary commission. Thus, companies offer a rebate on premium rates making it more reasonable.

These points prove that the term insurance plan is not just the most economical life insurance plan but also one with several benefits.