Term Life Insurance
We all understand the value of good financial planning, but sometimes affordability can be a challenge. To counter these problems, the companies came up with a concept of affordable coverage known as term plan.
In simple words ‘term’ is like renting and we can custom fit the plan in your budget by working on the term of the plan and the coverage required. The cheapest terms available in the market are 10 and go from 23, 30, 40. The shorter the term, the lower the cost and the most common one in the market are term 20 and term till age 65. Terms in financial planning are generally recommended for clients with affordability challenges or with temporary needs like mortgage protection, kid’s expenses and education expenses till they settle. These terms have some features inbuilt to it, like renewing the coverage automatically at the end of the duration and the ability to change this to a permanent plan at up to a certain age, without having to prove your health again.
So, buying a term with higher amounts is mostly recommended to lock these features which can be used anytime in future and considering the inflation affecting the saving and needs in future. These term plans are highly recommended to people in their early settlement stage or where the needs for certain periods are huge. Someone rightly said, it’s better to have some coverage then none.
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