New Delhi, Business Desk. You must have heard the word term insurance many times while taking an insurance policy and if you are going to buy a term insurance plan, then it is very important for you to have some basic information related to it. Often people are not able to differentiate between term insurance and normal insurance. But let us tell you that there are some basic differences between term insurance and normal insurance. Here we are going to tell you about the basic information related to term insurance.
What is term insurance
Term insurance is a type of life insurance. Term insurance provides us with a comprehensive financial protection against the upcoming uncertainties. Term insurance is the easiest way to get life insurance. Under this, the person taking the insurance has to pay the premium for a certain period of time. If during the stipulated period, the insured dies, the sum assured or a lump sum amount is received by his family or the nominee.
what are its benefits
A term plan is one such insurance policy that you must buy, as it gives you great coverage at a very low cost. Apart from this, the term plan comes in the list of policies covered under Section 80C of the Income Tax Act, 1961, hence its customers also get tax benefits. Along with this, many insurance companies also offer customers an opportunity to improve coverage during unforeseen expenses.
Long term protection benefits
Term life insurance provides you and your family with one, better financial support in all the ups and downs of life. You can opt for whole life cover till the age of 100 years. This gives you and your family financial stability in times of contingencies. Apart from this, many term insurance plans offer certain types of add on benefits such as accidental cover, critical illness cover, etc., which you can add to the base plan as per the requirement.
