5 Reasons Why Term Insurance Plans are a Must Have

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Why Term Insurance Plans
5 Reasons
are a Must Have
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What is term insurance?

• Term insurance is a type of life insurance policy
  that provides coverage for a certain period of
  time, or a specified "term" of years. If the
  insured dies during the time period specified in
  the policy and the policy is active - or in force
  - then a death benefit will be paid.

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3
 

1. Protection plans as risk covers, only
2. Protection plans are cost-effective
3. The perfect insurance plan for all
4. Suitable for single bread earners 
5. Protects dependents from short-term liabilities

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4
Advantages and disadvantages of term insurance
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5
Advantages

• During the early years of a term policy, the
  premium will usually be significantly lower than
  for cash value insurance.
• It's simple to understand.
• It may be purchased to meet a specific financial
  obligation, such as repayment of a loan.
• Many term policies can be converted to cash value
  life insurance if your insurance needs change

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Disadvantages

• Term insurance provides coverage only for a
  limited period of time, although some term
  policies can be renewed indefinitely.
• Premium rates are guaranteed only until the end
  of the term. Depending on the policy, premiums
  may be level for a period of 1, 5, 10, 15, 20,
  25, or 30 years and then cease without any
  renewal option, or offer continual renewals at a
  higher premium rate.
• Deteriorating health can trap you in a policy
  with rapidly increasing premiums.

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