Is a term insurance policy for you?

You should consider taking term insurance if you want adequate coverage at an affordable cost.

Taking insurance for oneself and one’s family has become par for the course in the case of every responsible person today. Rightly recognising that it may not be possible to pay for emergency expenses or indeed, future living costs just from one’s savings and investments, people who are sufficiently invested in their families’ welfare are bound to take insurance.

However, the multitude of insurance products that suit a variety of needs and budgets can confuse the novice investor. On the one hand, one wishes to take a plan that offers every possible benefit to the family, but on the other hand, such a plan comes with expensive premiums. Instead, it is always wiser to take a more affordable insurance product: term insurance.

Who should buy term insurance?

1. The fact that it has affordable premiums and a very high sum assured amount make term insurance policies extremely attractive to many. Term insurance in India offers some of the highest sum assured amounts across the insurance spectrum today. Hence, those who require a high sum assured for their family’s future can certainly buy term insurance.
2. Insurance can, and should, be purchased by each and every person with an income today. However, many people do not have the financial wherewithal to pay expensive premiums, especially those who have just recently started working. Thus, those who earn a modest income but would like to get sufficient coverage till they can afford a more expensive life policy must buy term insurance.
3. Insurance is not an investment instrument like other tools available today. It does not appreciate in value like gold or property does, nor can it be liquidated mid-way. This stops many people from buying insurance for their family. Besides, many who do buy insurance prefer to invest in life insurance that has maturity benefits, which term insurance policies do not offer. Thus, term insurance is ideal for those who do not view taking insurance through the prism of investment, and who are more concerned about their families’ future wellbeing.

Normally, term insurance premiums are quite affordable and one can easily set this sum of money aside even a couple of days before the payment date. Term insurance in India is a growing product owing to its simplicity and benefits. When selecting the right insurance policy, one must look up the premium payable by using a term premium calculator, and whether the desired policy has a good rating and recommendations from other policy holders.

You can find the best term life insurance in India by researching them online and comparing their features on insurers’ websites. It is also possible to buy term insurance online within a matter of minutes. Insurers encourage the purchase of term insurance online – in most cases, they do not insist on a medical test to complete the purchase, and the premiums are lower for online term insurance.