Why should you buy a term plan?

No sound blueprint on financial planning will be complete without the mention of a term plan. One of the most popular forms of life insurance these days, a term plan is your answer to getting an affordable insurance plan that can take care of uncertainties and unpredictable events in life.

To make things easier for you, we have listed down the key reasons why you need to get a term plan today.

  • Benefit through low premiums

The primary advantage of getting a term plan is the low premium you need to pay to get insurance coverage as compared to other options such as endowment plans which are available in the market. Since term plans do not call for any investment per se, the premium becomes very low. So if you are looking to get financial security at a very affordable rate, then you should definitely go for a term plan.

  • As flexible as they can get

Another huge benefit of a term plan is that it is highly flexible and can be customized as per the specific needs of an individual. You can choose from a host of online and offline options. Insurance companies also give the option of basic coverage (a lump sum is payed out to the nominee(s)) or a fixed income coverage (a monthly income is payed out to the nominee(s) instead of a lump sum till a specific time). Depending upon your requirements, you can choose the coverage that is most suitable.

  • Enhance coverage gradually

With a term plan, you can begin with a modest coverage and then gradually increase it by a certain percentage at critical milestones of your life (such as marriage, child birth, etc.). This helps the policy holder in two ways. One, it ensures that the ability to pay higher premiums is in sync with the passage of time and increase in income. Two, it enhances the insurance cover with increase in responsibilities of the individual, thus ensuring that everything is taken care of appropriately, and at the right time.

  • Enhance utility through riders

Term plans come with additional benefits called as ‘riders’, which enhance the overall utility of the policy. For example, the rider relating to loss of employment. So in the unfortunate event of loss of employment, you will be entitled to receive the assured amount. The best part is that this amount is over and above the coverage of the same amount in the event of death of the policy holder. So you are guaranteed to get both. Likewise, some other riders that policy holders usually avail include- critical illness, partial or permanent disability, etc. For healthy financial planning, it is important to understand what riders you need to avail with your term plan, and how you can benefit out of these.

  • Innovations galore

As compared to other products in the market, insurance companies have been the quickest on their feet when it comes to innovating with term plans. The premiums are already low in this category, and companies make it a point to offer unique discounts on top of that to attract customers. For instance, some companies would offer additional discounts to individuals who do not smoke. Also, with the advent of internet and technology, you can now buy a term plan online with the least hassle.

In an uncertain life, a term plan is a sure shot way of ensuring financial stability for your family. It is cost-effective, gives you great coverage, and is highly flexible too. So give wings to your financial planning and get a custom-made term plan for yourself today.

About AEGON Life: AEGON Life Insurance Company Limited launched its pan-India operations in July 2008 with a vision to be the most recommended new age life insurance Company. The fulfilment of this vision is based on having a complete product suite, superior technology, providing customized advice and enhancing the overall customer experience. This joint venture adopts a local approach with the power of global expertise to facilitate a direct to customer approach, leveraging digital platforms to bring transparent solutions to customers and to prioritize their needs.

AEGON is one of the world’s  leading financial services organizations, providing life insurance, pensions and asset management and Bennett, Coleman & Company, India’s leading media conglomerate, have come together to launch AEGON Life Insurance.

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