Term insurance might have been in the market for a long time. Although it has been in the Indian market for long, many of you might not choose term life insurance for your financial security. According to a survey, only 5% of people in India purchase a term policy. The primary reason for the ignorance towards term plans can be the lack of awareness.

Although a term plan can be the least popular life insurance product, it can play a crucial role in your life. But what is term plan? Term plans are a sub-subject of life insurance products that can cover your families against uncertainties such as death, critical illness, loss of income, and so forth. Before you purchase a term life insurance for your loved ones, let’s understand what term insurance in detail:

As the name suggests, term insurance can offer financial protection for a specific duration. It is the purest form of insurance, which can offer death pay-out to your family in your absence. Since the selected members can be the nominees, they can decide whether they want to receive the pay-out as a monthly income or lump-sum amount. If you survive the term policy, you can receive survival benefits that can allow you to lead a comfortable life in the future.

After the changes, a term life insurance product has become a combination of death benefits as well as survival benefits. Many insurance companies have availed such term plans with comprehensive coverage and new-age features. Due to its exclusive benefits, term insurance should be your top priority. Let’s take a better look to understand why it should be your number one insurance choice:

1. Term insurance can cover your family

As the breadwinner, you might bear the financial responsibility of your whole family. While your family can cherish your presence, your loss can be unbearable to your family. They might not only suffer emotionally but also financially in your absence. You might not be there for them physically after your demise, but you can ensure that their future can be protected without you. The death pay-out provided by the term insurance can provide financial support to your family when you are not around.

2. Term insurance can provide survival benefits

Today, many insurers have availed term insurance policies that offer the whole premium amount on the maturity of the policy. The premium amount that is returned to you can be termed as the survival benefits. With the survival benefits, you can ensure you lead a stress-free retirement period as well as fulfil your post-retirement goals such as traveling, indulging in sports activities, and so on.

3. Term insurance can allow you to meet your child’s educational needs

Education can be every parent’s top goal for their child. As a parent, you might wish to provide your child with the best of everything, especially education. However, growing inflation can make it difficult for you to manage the educational needs of your little one. If you want to provide your child with the best without any financial constraints, you should purchase term insurance. With a term plan, you can receive financial support to fund your child’s education.

4. Term insurance can let you increase the coverage value

As you cross every stage of life, your financial requirements may vary. Usually, your financial needs can increase when you get married or have children. Since your financial dependents might increase, you should ensure that you cover each dependent from every unfortunate event. After crossing specific milestones, you can increase your term coverage to safeguard you and your loved ones permanently.

In a nutshell, term plans have drastically evolved into a better product to secure you. When you purchase a term plan, see to it that you select the right plan based on your financial requirements. Moreover, buy term insurance at an early stage in your life to receive low premiums. However, use a term life insurance calculator to determine the premium amount and compare multiple term plan options available in the market.