Are you thinking of taking life insurance? So you have to take care of few things first. Because many people do not even understand what is term life insurance and normal insurance plan. Because the insurance agents are not able to explain you well. But let us tell you that there are some basic differences between term insurance and normal 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. The only advantage of taking term insurance is that you have to pay your premium for a period of time. And then after that there will be an insurance plan like yours. That’s how you will get money.
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. In view of its benefits, many insurance companies like hdfc life, ICICI Prodential are paying more attention to term life insurance plans.
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.