Life is beautiful, but the uncertainties it holds can make it look ugly. In some cases, the uncertainties can lead to critical health problems, resulting in financial burden. One way to minimize the financial impact of such uncertainties is to buy term insurance. An online term policy can help you build a financial safety net for your family.
Life insurance plans, especially term policies, are quite popular amongst the masses because of its budget-friendly rates of premium payable against a significant life cover. Another reason behind the popularity of the term insurance plans is the provision of maturity or survival benefits under the policy.
The very nature of a basic online term policy is that it offers life cover but no maturity benefits. It means that you will not get the benefits from your term plan if you survive the chosen tenure. However, there is a silver lining in this aspect.
Why Should You Buy an Online Term Policy with Return of Premium?
- Supports Various Phases of Life
When it comes to insurance plans, especially term insurance policies, there is no one-size-fits-all approach. One of the most significant advantages of buying an online term policy, especially with the return of premium option is that it fits well into various phases of life, based on your needs.
For instance, if you are single and have retired parents who are financially dependent on you, this policy will help them meet their regular expenses. At the same time, you get survival benefits as well.
Similarly, if you are married but with no kids, your spouse can get the life cover benefits in case of an unfortunate event. Alongside, you will receive the premium back at the end of the policy’s tenure.
- Gives Income Security in the Later Years
You want to live a long, happy life with a loving family and friends. To make it happen, you tend to follow healthier lifestyle choices and live without stress. But you cannot ascertain if you will have a good source of income in the later years of life. Buying an online term policy with the return of premium feature helps in this regard.
It gives life cover during the policy tenure along with a predefined sum of premium paid on its maturity. Let’s say you buy a term plan for 30 years and survives this tenure. At the end of it, you willmost likely be in or near your retirement phase. You can utilize the premium you get back as an income in that phase of life. It sounds more like saving a certain amount for a long tenure, which you will get back to enjoy your retired life.
- Comes with Multiple Premium Payment Options
It may feelchallengingfor you to pay the premium throughout the tenure. It is why you look for an online term policy that offers multiple payment modes. Although the availability of multiple premium payment modes depends on the insurer, you can easily find the plans that provide such flexibility.
Therefore, you can choose to pay the premium either all in one go (single pay), monthly, bi-annually, and annually – depending upon your financial disposition.
Right Selection of Online Term Plan Matters a Lot
Now that you know the difference between an online term policy with and without benefits, you may be wondering how to buy the most suitable term plan for yourself. While it is good to choose a basic term plan that only offers life cover, it is crucial to think of other related aspects as well to buy the best term plan. With a slightly higher premium, you can get a term policy with a return of premium option, which is more advantageous in several ways.
Make sure you choose a renowned insurer and check if the term plans are authorized by IRDAI. Term insurance plans available with reputable insurers such as Max Life Insurance provide a wide range of policy benefits, including cost-effective rates of premium, extended policy tenures, and flexibility to choose the payout methods.
Nowadays, these plans also offer to return the total amount of annualized premiums paid towards the plan if you survive the coverage tenure. Therefore, there is more than one reason that validates the choice of buying a term plan with maturity benefits.