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IS TERM INSURANCE IS THE BEST LIFE COVER OPTION?



So let’s try to make the process more simple. Let’s first understand what life Cover is and what purpose the same serves for you. From the perspective of having a better financial life people generally make investments and which in future aggregates to give you lump sum money and the same can be used for purpose of fulfilling financial goals. But for that you need to have regular flow of money in the initial year, what if the family's main bread earner dies and the flow of money stop. In a case like this the investment fully not serves the purpose. This is where the live cover option comes at a great help to the person. In case the person is the sole bread earner for the family and if he or she dies, then the regular income flow stop but the goals and liabilities still stays. A life cover provided under a life insurance policy or aptly saying under a term insurance plan enables the family members with the right amount of financial support to fulfill the liabilities and goals. Thus the life cover is an apt financial instrument for having a better financial life and health.
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Now coming to the point which is the best option to get a life cover. From the above the description it is quite clear that the money that is paid towards life cover is actually a cost.So lower the cost the most effective it is. There are lot of life insurance policy options that available today to give a better life cover. Some plans come with return option similar to an investment product and some do not. Life Insurance plans which only offers life cover and don’t return any money at the end of the term of the policy period are technically called term policy. Since the term insurance only insures financially security for the nominees of the policy proposer so all these plans come with a very cheap premium pricing. The insurer generally charges a premium depending on the risk profile of the person. Premium pricing largely depend on the age of the policyholder. People people Buy Best Life Insurance Policy India at a very early age always enjoy the benefits of getting a higher cover at the lower price with more additional benefits attached to it. But this is not the case of people buying term plans at a much older age. The main reason behind it is that as the person grows older he/she becomes more susceptible to diseases and health problems so the insurer also evaluates the person to highly risky and charges a higher fee for the same amount of life cover.

Other than this online term plans are always considered cheaper. People opting for online term plans are believed by insurers more access to information and health care facilities and this become an additional factor which leads to online term plans becoming cheaper compared with other life cover option. So when the objective is clear and straight forward there is no point of wasting money in other options.  The life cover plans which even come with extra return option generally invest you money with assets like debt market and equity market but there operating cost is always higher. So from the perspective of life cover term insurance becomes the most effective option for people choose upon. if you are smart person to make a better decision you can also further save more by doing online compare term insurance plans online of various term plans available from various insurers.


This post first appeared on Insurance Tips, please read the originial post: here

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IS TERM INSURANCE IS THE BEST LIFE COVER OPTION?

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