Why term insurance?

Nov 20, 2017 | 2 years ago | Read Time: 2 minutes | By iKnowledge Team

A term insurance is a kind of insurance plan that offers coverage for a specific amount of time. In case the insured passes away while the term plan is still active, the nominee of the plan receives the death benefit.

Term insurance policies are comprehensive insurance products that help secure your family financially in your absence.

A few reasons why you should invest in these policies are:

  • Financial security

A term insurance plan offers financial security. It protects you and your loved ones when it is most required. Due to an unfortunate event, if you pass away, a term insurance plan will take care of your family’s finances in your absence.

  • Larger coverage for lower premiums

One of the most-noted benefits of term insurance is that you are able to avail of a higher coverage at lower premium rates. Hence, a term insurance policy is affordable in comparison to other plans like an endowment plan. For example, Mr. Ramesh buys a term insurance plan when he is 30 years old that gives him a cover of INR 1 crore for 30 years. However, if he buys an endowment plan for INR 1 crore, he will have to shell out a larger premium amount as compared to a term insurance plan.

  • Longer coverage

One of the best term insurance benefits that Aegon Life offers you is coverage till the age of 80 years. A longer coverage is always an added benefit. This is because, during your entire lifespan, you cross important milestones and have added responsibilities. A term insurance policy protects the future of your loved ones at each step, in case of an unforeseen event.

  • Flexible

Known for its flexibility, term insurance policies allow you to increase your life coverage as you reach different milestones of your life. From being newly married to raising a family, each stage of life has different needs. So, having an insurance policy that grows with your growing needs is essential.

  • Rider benefits

A term insurance policy gives you the choice of adding riders to your existing policy. These riders can be added at a nominal cost to your monthly premiums. A rider ensures that apart from the regular pre-decided sum assured, you also get additional financial benefits depending on the type of rider you have chosen. With Aegon Life’s term plans, you can add accidental death benefit and terminal illness riders to your iSpouse insurance plan. Besides, in the iTerm insurance plan, you have the option of adding accidental death benefit, critical illness, women-related critical illness, and disability riders to your plan.

  • Benefits to women and non-smokers

Aegon Life understands the responsibilities a woman of the house has. It, therefore, offers the benefit of lower premiums to women. Non-smokers also enjoy this benefit as they are at a lower risk compared to smokers.

  • Tax benefits

According to Section 80C of the Income Tax Act, premiums paid on all term policies are exempted from tax.

A good insurance policy is one that not only offers you protection but also value for money. So, when you think about securing the future of your loved ones in the best possible way, term insurance should be your answer!


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