How To Save Money Using Term Life Insurance

Saving money is as important as earning it

Saving money is as important as earning it. Its a huge step for financial success and fulfillment of your long term financial goals. Investment is one of the best ways to save money for the present as well as for future financial needs. Buying a life insurance is the biggest hit when it comes to conventional investment plans for young, earning individuals. Amongst various types of life insurance, term life insurance is the most popular. The term insurance is chosen by many individuals as it is inexpensive and easy to understand.

What is term insurance?

Before finding out ways to save money using a term life insurance policy, you need to learn the basics of term insurance. As the name suggests, it is a type of insurance that provides life coverage for a term- predetermined time. The sum assured for term life insurance is handed over to your beneficiaries upon your demise. You are required to pay timely premiums that are predetermined on the basis of the total sum assured. According to the experts, a term life insurance plan is a must for those with dependent members in their family.

When it comes to buying a term insurance, you need to consider a few things like the amount of sum assured for the dependents, interest rate, inflation rate, the kind of life coverage that your term plan provides, your pre-existing health conditions and the elimination period provided by the insurer, that the beneficiaries need to wait for before receiving the money after your demise. There are two basic coverage type of a term insurance, namely comprehensive term plan and facility care. Experts suggest that comprehensive increasing term life insurance reaps more benefits.

How to save money using a term plan

The best thing about term insurance policies is that they provide dual benefits of life coverage and money saving. Along with assurance of the future of your loved ones after your demise, you can alternatively save a significant amount of money. Experts also suggest that one should opt for online term insurance plans that are inexpensive and even easier to obtain than their offline versions. Here are the key features and advantages of term life plans:

Term life plans are extremely affordable, flexible and ideal for those who are looking for short-term financial planning.

With term life you get to pay affordable/low premiums for high coverage. You can choose terms like 10, 15 and 20 years.

You can plan for the future of your loved ones like kids education, spouses health in old age and mortgage charges by adjusting the time of maturity of your insurance policy.

Rather than investing a larger share of your investments in whole life plans, you can save a smaller amount on life insurance and invest the remaining in other beneficial investment schemes. Make strategic plans for the maturity of your various investments, which will keep the money flowing.

by: Gunjan shastri

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