What is Term Insurance and how is it different from Life Insurance?
‘Term Insurance’ is a pure form of life insurance products available in the market. It gives the ultimate financial protection for the family in case of the death of the prime breadwinner in the family. The major differences between a term insurance plan and a life insurance plan are:
- The former comes with ‘No maturity benefit’; however you can add riders to make it more beneficial.
- For term insurance, the insured person pays a comparatively lesser amount of premium.
Term insurance benefits
As I mentioned in the title only that it is the best protection for you and your loved ones. I never knew that it could give me the ultimate peace of mind when it comes to the financial security of my kids and family. Here I am listing down top six-benefits of a term insurance policy:
- Financial security against unforeseen circumstances i.e., the death benefit
- Premiums are affordable
- Tax benefits
- High coverage
- Additional Rider
- The low claim rejection ratio
Best Term insurance Plan and Best place to buy Term Insurance
The best term insurance plan is the one that meets the requirements of the insured person. There are various companies in the market which will make you believe that they are the best in the market. And you as a buyer become confused and overwhelmed with the multiple options given to you.
When I decided to buy term insurance for my family, I had no clue what I really needed and which company to connect to. Thanks to Priyanka Bhatia of ‘Women On Wealth’ community for telling me to figure out the best plan for me and my family. So, I thought and recalled Akshay Kumar doing the Policy Bazaar ad on television. And then I quickly connected with their executive and that girl from their team was efficient in understanding my requirements and suggested me some plans. I took a day or two to finalize the term plan. I discussed it with some people and my husband and then bought the policy.
Term insurance calculator
While choosing the plan, one of the major challenges I faced was of deciding the cover (total amount) of the policy. So, I pinged Priyanka asking her suggestions and she was helpful enough and gave me these pointers to help me figure out the sum assured which I needed for the financial protection of my family.
How much cover should I take in a term plan?
| Things to keep in mind while deciding on the sum assured |
| How much money do you need to run your house comfortably? |
| How much money do you need for the higher education of your kids? |
| If you are in debt (car loan, home loan, etc.), how much money do you need to pay off your debt? |
After deciding the sum assured, the next step was to choose the best plan as per my needs and with Policybazaar’s Term Insurance Calculator, I could do this strenuous task in a few minutes only. It helped me in choosing the plan, deciding the premium/mode and riders after doing multiple comparisons and that too in very less time.
Why Policy Bazaar?
- Their team understands your requirement and then suggest the best possible plan for you
- They guarantee lowest premiums as companies give a discount on buying the policies online
- They assist in the claims settlement process
For me buying term insurance was the first step towards building a financially independent life for me and my family. I hope this post would be of any help to my readers too.
Do share and spread the knowledge!
I am ashamed to admit I have very negligible knowledge of insurance. Your post was very helpful and insightful to read.
My hubby already has term insurance. We are aware of its importance.I am glad, I am reading this and understand the benefits more better
My brother had explained me all these benefits of taking them insurance and after reading your post I will think about it seriously . Thanks for sharing all details.
Thanks for sharing this with me, it really really important to understand these insurance policies as we can decide properly which one is better
I have had instances when these term insurances had been quite a saviour for me and my family. Its great that Policybazaar lets us calculate and decide on what would be best for us.
I am planning to invest in a good term insurance plan. Thanks for suggesting Policy Bazaar. I heard a lot about it.
Thanks for the informational post. Yes we as family have term insurance, this post will surely make readers to think over it.
Although i am action investments and all still i never had so much clarity about the difference between the two types of plans.
I was looking for a good term insurance plan for investment.. Thanks for suggesting policy bazaar ..
Great post that guides on good financial planning. I have invested in term insurance. Will share this post with my hubby too
It’s really difficult for me to understand all these terms associated with insurance thus I don’t spend much time in making insurance decisions. I will forward this post to my husband who I’m sure will find it very helpful.
not having insurance is a scary thing. we always take care to get the best term insurance in case of emergencies.
Although I don’t have much knowledge about them…but my husband did got them for us…To understand all I have read the post again (God I feel embarrassed)
This was a very helpful post, thank you for sharing. My knowledge about insurance was very little but thanks to this post now I have a little better idea.
I never knew that term insurance would be such an great option. Thanks for sharing this helpful post
This post came just in time. Recently my husband and I were talking about term insurance. Thanks for sharing
Very informative article. Thanks for sharing.