Among all the types of life insurance we have, Term Insurance is the most traditional one. Under the term insurance policy, the insured person gets the death benefits if anything unfortunate happens within the policy term. Even there is provision to pay the death benefits to the nominee. But, if the policy is expired or the person outlives the policy term, he will not be entitled for any benefit. Thus, the name ‘Term Insurance’. A good term insurance not only covers death benefits but disease and disability also.The pay-out provisions of term insurance are simpler than any other insurance policies. You can customize your own plan and pay-out schemes. The insured person enjoys double edged benefits under term insurance policy. In one hand, the premium costs are set at a very low price; and on the other, the premium the policy holder pays are completely exempted from Income Tax deductions. Moreover, in the time of your serious needs, like disease or disability, you can always be paid off.
One of the main reasons for its mass attraction is because it is very easy to understand. It is affordable. And its coverage is surprisingly wide. Another interesting fact about term insurance is that the cost of your premium depends on when you start. If you buy a term policy early in your age, it is expected that the premium cost will be lower as compared to the older age.There is no fear of the premium cost being revised in future once your plan is accepted by the company. It is because of this fixed premium policy term insurance is more favoured.