Long term Benefits
Term plans provide a benefit only in case of death. That is why these plans allow coverage for longer tenures. One can get coverage for up to 30 or 35 years under term insurance plans.
Benefit payable
Term insurance plans pay only a death benefit if the insured dies within the selected tenure. If the insured survives till the end of the term, no benefit is usually payable. However, under return of premium term plans, the premiums paid are returned on maturity.
High sum assured levels
Term plans allow policyholders to choose high levels of sum assured. There is, usually, no limit on the amount of coverage the policyholder can avail. These high coverage levels ensure that the insured’s family would be financially secured in case of premature death of the insured.
Low premiums
The best and the most unique feature of a term plan is the low premium rate. Term plans are the cheapest life insurance plans available in the market. Since premiums are the lowest, it becomes easy for the policyholder to afford high coverage levels.
Non-participating plans
Term plans are offered as without profit or non-participating plans. Bonuses are not declared under the plan. Only the sum assured is paid in case of death of the insured during the policy term.
Inbuilt riders
Many term insurance plans which are offered nowadays come with inbuilt riders which increase the scope of coverage of the plan. The most common riders which come inbuilt in term plans include accidental death benefit rider and terminal illness rider.
