5 Reasons to Buy a Term Plan to Protect Your Family

While life is fast paced, uncertainties are also towering each day. None of us know what the future holds for us. A Term Insurance is more than essential to help your family cope with all their financial requirements. Term Insurance plans provide financial security to your family in your absence.

It is best to purchase term plans early because of significant life changes. While some succeed in finding their dream career, some get married and welcome their offspring. As it involves significant financial decisions, obtaining a Term Insurance indicates deliberately securing ones future.

Importance of a Term Plan

While you choose to invest and amplify your wealth, make sure you protect it. Purchasing a term plan from ICICI Bank will help you do so. It offers you and your family comprehensive financial coverage at very affordable rates. In case a life is lost while the term policy is still active, insurers will pay your nominee's a benefit amount.

A Term Life Insurance will provide you with a large sum for life cover at an extensively low premium rate. The plan also offers a lump sum pay out if you have been diagnosed with any listed critical illness. Besides, it also provides coverage for accidental disability. You can choose from pay out options like regular income, lump sum, etc.

While the term plans are available at nominal premiums, it is best to opt for them as early as possible. 

Compelling Reasons to Buy a Term Plan

1. Helping Your Family Grow

Most people start their family planning typically between the age of 25 - 30 years when financial security becomes the focal point in their lives. While you welcome your progenitors, your parents retire and the number of dependents in your family increases. Thus, it would be best to draw a contingency plan like Term Insurance that will protect your family’s future finances when you’re not around. Besides, it will provide you with peace of mind as well.

2. Providing Financial Security to Your Family

While life is full of uncertainties, there might be chances of untimely death. This will bring forth unfortunate financial liabilities on your family. To avoid such an unfortunate turn of events, it is best to invest in a term plan early in your life. It will protect your family and take care of their financial requirements.

3. Return of Premium Option

All policyholders get a death coverage after purchasing Term Insurance. However, it does not offer any benefits after maturity. But, you can choose the ‘Return of premium’ option to avail the maturity benefits. You will need to pay a comparatively higher premium amount for that and if you are alive until the end of your policy tenure, you will get the total premium amount.

4. Low Claim Rejection

When purchasing a Term Insurance, it is essential to provide valid documents and information. Ensure you disclose all proper facts regarding your finances, health condition, habits, etc. IRDAI or Insurance Regulatory and Development Authority states that no insurance company can claim information non-disclosure after two years. This means they cannot claim that the provided facts aren’t true after two years of making the policy effective.

5. Low Premium Rate

All term plans usually have a lower premium rate than other insurance plans. It is because the insured amount has zero involvement in any investment element. You might only have to pay 1% of your annual income to obtain a family life insurance. As this element is not included within the insured amount, the premium for a term insurance is comparatively lower. For instance, a policy of Rs 1 crore will have an annual premium of around Rs 7,400.

To Conclude

A term plan is the most affordable life insurance policy ICICI Bank offers. You must purchase it early in your life to reap the comprehensive benefits it provides.

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