July 17, 2024

The Domestikated Life

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Should you Buy Online Life Insurance or Term Insurance for Your Family?

Should you Buy Online Life Insurance or Term Insurance for Your Family?

Should you Buy Online Life Insurance or Term Insurance for Your Family?

A life insurance plan helps you to create wealth and also provides financial security to the family. Term insurance only provides financial security to the family in the unfortunate death or permanent disability of the policyholder but at affordable premiums. Besides, both these insurance plans offer tax benefits to the policyholder. Let’s understand what these plans are and which one is most suitable for your family.


What is Term Insurance?

Term insurance plans are a type of life coverage that provides death benefits to the family of the deceased. This is why it is also known as pure life cover. This coverage provides financial protection to the family during eventualities like death, critical illness, and disabilities. The plans provide a large life cover to the family at an affordable premium. One of the reasons why the premiums are affordable is because it doesn’t provide any survival benefit.

What is Life Insurance?


Life insurance plans provide both death, maturity and survival benefit. Life insurance plans allow you to grow your wealth and provide financial security to the family in case of any eventuality. Life insurance plans are also a great way to build a corpus for post-retirement life. The premium rates are higher than that of term insurance plans.

Know the difference between Term Insurance and Life Insurance

Coverage Duration

Term insurance provides coverage for a specific term or period, such as 10, 20, or 30 years. If the policyholder dies during the term, a death benefit is paid out to the beneficiaries. If the policyholder survives the term, there is no payout. Life Insurance, on the other hand, provides coverage for the entire lifetime of the insured individual, and a death benefit is paid out regardless of when the policyholder passes away.

Premiums

Term insurance generally has lower premiums compared to life insurance. This is because term insurance only provides coverage for a specific period, and if the policyholder survives the term, the insurance company does not have to pay a death benefit. Life insurance, which provides coverage for the entire lifetime, has higher premiums as the insurer is certain that a death benefit will eventually be paid.

Buying online life insurance or term insurance

Whether your family needs term insurance or life insurance entirely depends upon your family’s needs. But there are a few reasons why you should consider buying online life insurance or term insurance.

  1. Purchasing insurance online allows you to compare different policies, features, and premiums from the comfort of your home. 
  2. You can avoid lengthy paperwork and waiting for policy documents to be mailed to you.
  3. Online insurance policies often come with lower premiums compared to traditional policies. 
  4. Online platforms provide transparent information about policy features, terms, and premiums. 
  5. Online platforms often offer a range of customization options, allowing you to tailor the policy to your specific requirements. 
  6. Online insurance platforms often provide educational resources, calculators, and tools to help you understand insurance concepts, estimate coverage needs, and make informed decisions. 
  7. Online insurance applications are typically processed faster, and policy issuance can occur within a few days or even minutes in some cases. 

Term insurance is a suitable choice for individuals who need coverage for a specific period, while life insurance is more appropriate for those seeking lifelong protection and the additional benefit of getting returns. The decision ultimately depends on your individual needs, financial goals, and budget.