A large number of people prefer term life insurance plans despite the fact that no maturity benefit is usually associated with it. The reason for its preference is due to the purchasing an amount of high coverage level at pocket-friendly premiums. Thus, a policyholder can protect his/her family against any kind of income loss that the family members may come across in the case of demise of the policyholder.
The best part of Term insurance plans is that, their premium rates won’t create a load on the pockets of people. Moreover, it will be very helpful for them in funding their income substitution requirement in an effortless way.
LIC Term Plan is one of the most popular Term insurance plans due to its unmatched reliability, facilities, and convenience.
It is a wise decision to purchase a term plan at a young age because the investment in this policy depends on the age of a person. We already know that term plans are very affordable and hence almost everyone can afford to purchase it. Buying a term plan at a young age is a smart decision mainly due to two reasons:
Health: It is a fact that a younger individual is healthier, compared to an aged person. The term plan’s premium is greatly dependent on the health and age of a person. Hence, a younger person needs to invest a significantly less amount. To save considerable amount of your hard-earned money, you need to purchase a LIC Term Plan as early as possible.
Saving: Purchasing LIC Term Plan at an early age will make you tension free in aspects such as saving money for the family’s financial needs in your absence.
Thus, you can invest the remaining money in several other financial instruments, such as savings bonds, real estate etc. As a result, you can enhance your wealth.
Risks of LIC Term Plans
Apart from an array of benefits, Term insurance is associated with some risks as well. It’s the time to discuss these risks:
The term insurance premium inflates sharply with increasing age and hence insurance requirements at increased age can’t be economically fulfilled with the facilities of Term insurance.
People beyond the age of 65 or 70 can hardly purchase term insurance because most insurance companies don’t offer the same after a certain age. Even if they find a term insurance plan after this age, it will surely be associated with several conditions, drawbacks for the policyholders.
If you want to save money for a specific purpose, such as children’s education, marriage, retirement requirements, then Term insurance is not what you are looking for.
Term insurance will not help in providing capital or income to their family when the policyholder is alive.
No loans or surrender values will be available within the term policies.
Term insurance can’t provide protection against the issue of inflation, because they don’t involve profit plans.
If a person has become uninsurable due to any reason (health issues for an instance), then he/she cannot renew the existing term policy or invest in new term insurance.
A term insurance policy can’t create wealth for you.
Now, you can better judge the overall situation and make a decision as to whether you need a term insurance policy or not. However, if you are looking for term insurance, don’t forget to consider LIC Term Plan.
Best LIC Term Plans
LIC offers an array of term insurance plans with various features, facilities, and benefits so that people of any financial capability can find a suitable plan. LIC Term plan online are available on their dedicated user-friendly website that has come with pocket-friendly premium rates.
The best plans in this regard are as follows:
LIC Anmol Jeevan II Term Plan
It is one of the popular term insurance plans that offer the incredible facility of a lump sum on account of the demise of the policyholder.
LIC Amulya Jeevan II Term Plan
It is a popular LIC term insurance plan that provides the facility of death benefit payment in case of the sad demise of the policyholder, so that the respective family doesn’t face any financial crisis in the absence of the earning member.
LIC e-Term Plan
Life Insurance Corporation of India or LIC offers this incredible LIC online term plan through their user-friendly website. It offers the facility of the payment of the particular Sum Assured only in case of demise of the policyholder within the specific tenure of the LIC e-Term Plan.
You can choose the best term insurance plan, according to your requirements and budget. LIC offers multiple modes through which people can make their premium payment. Don’t forget to consider LIC Term Plan when you start looking for a term life insurance plan.