Busting 5 Myths About a Term Life Insurance Policy
Term life insurance policy is known as pure life insurance and a type of life insurance that guarantees payment of a stated death benefit if the policyholder passes away during a specified term. It guarantees payment of a stated death benefit to your family in case you are not around them. In a term life insurance policy, the insurance company covers the life of the policyholder in return for a nominal amount known as “Premium” and for a period known as the term. Why Should You Buy Term Life Insurance Policy? When you buy a term life insurance policy, you will ensure that your family has a financially secured future even when you are not around them. The financial needs of your family will be fulfilled. The death benefits from the best term plan can help your loved ones pay for their regular expenses and also achieve their long-term goals. Plans like smart secure plus plan max life also cover the children’s education costs and future difficulties and provide a steady flow of income to your family in case of the ultimate demise. How does Term Life Insurance Policy Works? When you purchase any term life insurance policy, the insurance company determines the premiums based on the policy’s value, your age, gender and health. The insurance company may also require your current medication, occupation, driving record, and family history. If the policyholder passes away during the policy term, the insurance company will pay the policy’s face value to the beneficiary of the policyholder. This benefit is tax-free and helpful to the policyholder’s family to be financially secured.