What is Term Insurance : Term Insurance kya hota hain – What is Term Life Insurance and its benefits.
Term Insurance is the purest form of Life Insurance in which Insurance company provides the financial protection to the family of insured person in case of untimely and unfortunate death of insured person. Think about the future of your family without you if you are the only source of income. In your absence what will happen to the future of your child. How will your family survive in your absence. So to insure the future of your loved ones you must think about a term life insurance plan.
What is Term Insurance
Term insurance in simple words is a agreement between a insurance provider company and a Policy holder known as Insured Person also. In case of unfortunate demise of the insured person the insurance company provides a lumpsum amount to the nominee mentioned in the policy. It helps the family in your absence. The amount paid by the company depends upon the plan you choose. This plan is also known as Insurance Policy. The policy holder have to pay premiums to the insurance company according to the plan he choose. There are so many companies and banks like Max Life Insurance, SBI, HDFC, ICICI and many more which provide life insurance.
Who Should Purchase or Bury a Term Insurance Policy
This questions arises in mind of every person who is willing to buy a insurance policy. In general a person should buy a insurance policy who has financial dependents. You can understand this by assuming that you are the only person who earns for the family. Your family depends completely on you for its financial needs. Then you must buy a term policy. It is because if something wrong happens to you then there would be no option to your family for the fulfillment of its financial needs.
When We Should Buy a Insurance Policy
It is advisable that you should buy a insurance policy in early years of your life like during your early 30s. The one thing I must want to add is you should have a stable source of income to pay the premiums of the policy. In case of missing premiums your policy may brake and all of your money will get wasted. So be sure when buying a insurance policy. Also with increasing age the amount of premiums also increases.