Advantages and Disadvantages of Term Insurance Policies

<p style&equals;"text-align&colon; justify&semi;">Did you know that a surprising 998 million Indians were living without life insurance cover in 2017&quest; This is what a survey by the IRDAI revealed&period;The only problem with whole life insurance policies is that they could cost a lot for the sum assured that you’d like your family to receive on your demise&period; This is where <a href&equals;"https&colon;&sol;&sol;www&period;sbilife&period;co&period;in&sol;en&sol;online-insurance-plans&sol;eshield" target&equals;"&lowbar;blank" rel&equals;"noopener">term insurance plans<&sol;a> make more sense&period;<&sol;p>&NewLine;<p style&equals;"text-align&colon; justify&semi;">Unlike whole <a href&equals;"https&colon;&sol;&sol;newsforpublic&period;com&sol;facts-life-insurance-need-know&sol;">life insurance<&sol;a>&comma; term insurance does not have an investment component&period; It is a pure insurance product&period; This makes it much cheaper than any other type of insurance&period; What this means is that you can get very high cover at a fraction of the premium amount that you would need to pay for whole life insurance&period;<&sol;p>&NewLine;<p style&equals;"text-align&colon; justify&semi;">Term insurance offers protection after death&comma; at a fixed payment rate&comma; for a specific period of time&period; With the help of a term insurance calculator&comma; you can calculate the premium to be paid to get the amount you want&period; Here are a few significant things to consider before buying a policy&period;<&sol;p>&NewLine;<h2>Pros of Term Insurance Policies<&sol;h2>&NewLine;<hr &sol;>&NewLine;<ol style&equals;"text-align&colon; justify&semi;">&NewLine;<li>The premiums for term insurance plans are lower than that for other types of life insurance&comma;while offering similar death benefits&period; This is because you only have to pay for death benefits&comma; which will be received by your beneficiaries if you expire during the term mentioned in the policy&period;<&sol;li>&NewLine;<li>Term plans are much easier to understand&comma; even for a layperson&period;Planning your financial goals&comma; understanding endowment policies&comma; dividing the premiums and so on can be stressful&period; But term insurance does not have these complications&period; All you have to do is simply pay the premium and fix the sum assured for the particular time period&period;<&sol;li>&NewLine;<li>Cancelling a policy is also very easy&period; To opt out&comma; you simply need to stop paying the premiums&period; Your policy will be automatically terminated&period; You can even renew it&comma; if required&period;<&sol;li>&NewLine;<&sol;ol>&NewLine;<h2 style&equals;"text-align&colon; justify&semi;">Cons of Term Insurance<&sol;h2>&NewLine;<hr &sol;>&NewLine;<ol style&equals;"text-align&colon; justify&semi;">&NewLine;<li>Even the best term policy might not be economically beneficial because the premiums keep increasing every time you renew the cover&period; Also&comma; many companies do not offer term insurance beyond the age of 65 to 70 years&period;<&sol;li>&NewLine;<li>If you outlive the policy term&comma; there is no sum assured to be received&period; So&comma; these plans are for pure protection&comma; rather than wealth creation&period;<&sol;li>&NewLine;<li>Lastly&comma; when the term ends&comma; the policy will stop coverage&period; In case you become uninsurable while you term is still on&comma; the whole process of purchasing another term becomes expensive&period;<&sol;li>&NewLine;<&sol;ol>&NewLine;<p style&equals;"text-align&colon; justify&semi;">Term insurance can be an important part of your financial plan&period; Along with understanding the terms and conditions of this type of insurance&comma; use a <a href&equals;"https&colon;&sol;&sol;epolicy&period;sbilife&period;co&period;in&sol;eShield&sol;UI&sol;PremiumCalculation&period;aspx" target&equals;"&lowbar;blank" rel&equals;"noopener">term insurance calculator<&sol;a> to make an informed policy decision&period;<&sol;p>&NewLine;