The main purpose of term insurance is to serve as your family’s financial spinal cord. The cover will remain active for a defined period of time. In the end, it offers a guaranteed sum to the nominee if anything unfortunate happens during the chosen life span.
The term plans will offer coverage for around 5 to 40 years. But, in case you are looking for a temporary financial fall-back for your beloved, the short term insurance policy is what you should be aiming for. Such term plans with short tenure will be called short term based insurance policies. There are certain features involved in it, which brings you to the next point.
Get some of the death benefits:
Here, the policy is likely to pay the final sum as assured to the nominee in case any unwanted event takes place within the policy term.
Tax deductions:
The premiums associated with the short term policy will be eligible for deductions from the taxable income under Section 80C of the IT Act of 1961.
The major add-on covers:
For a nominal increase with your premium plans, you can easily extend the current base cover against all kinds of possible contingencies.
- It will help you to receive a hefty pay-out upfront after diagnosing the life-threatening ailments, as covered right under the plan.
- You will also receive the pay-outs on any permanent disability, which has been a result of the accident.
- You will further enjoy the extra pay-outs, as paid to your family over the basic sum assured in case untimely demise took place as a result of an accident.
The value of lower premiums:
The term plans are not going to have any investment features. So, the policies will have lower premiums when compared to some of the other life insurance plans. On the other hand, the premium amount will depend on the current policy period along with the assured sum amount. As the short-term policies will have lower policy tenures, the premiums will usually be toward the lower scale.
The right time to get one:
In case you are suffering from some immediate financial liabilities, which will burden your family during any unforeseen event, then a short term policy will be pretty useful to consider.
- In case you have unpaid debt, then the short term policy will help you cover up the payments with ease. The term of the policy will match the mortgage or loan repayment tenure.
- If you have a few years left for your retirement, then the short term plans will work for you. Term plans are mostly used to get some financial coverage throughout someone’s working year. So, if your retirement is close, then this short term policy will secure your family’s financial condition during that interim section.
- If you are a senior citizen and your older life insurance is about to expire soon, then for covering extra financial relief, these short term plans are always there to the rescue.
So, next time you are looking for financial support, make sure to opt for the short term ones. The results are impeccable to address.
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