Why should you opt for term insurance over other life insurance products? We present four compelling reasons.

Every person is aware of one basic fact of life: it changes in one instant. There is nothing one can do to prevent future tragedies from taking place. At best, one may prepare oneself emotionally and financially to meet a future mishap with equanimity.

However, despite being aware of this basic fact of life, not every person takes proactive steps to pre-empt the financial ramifications of a future setback. While one may feel that one’s savings can help in times of a crisis, the reality is that just one visit to the hospital can wipe out not just your savings but everything you own. On the other hand, unpaid debts can haunt the family when the primary earning member is absent from their lives. No matter how diligently you save your money or how carefully you live, there is no way to predict how soon or late a catastrophe may strike.

You cannot prevent a tragedy, but you can take steps to blunt its force when it occurs: you can do this by taking a term life insurance policy. If you have never considered buying term insurance, consider these four important factors before doing so:

1 Affordable. The primary reason why most people opt for term life insurance is that its premiums are extremely affordable. But unlike other insurance policies that offer a low sum assured for low premium amounts, term plans provide a high sum assured amount. Also, the premiums are not taxed. However, there are no maturity benefits for the plan: if the policy holder survives the plan tenure, the policy is terminated at that point and no part of the premiums paid is returned to the policy holder.

2 Easy to purchase online. Since term plan premiums are low, most insurers do not insist on medical tests when customers purchase the plan. The process is further eased by insurance companies allowing customers to buy online term insurance in a matter of minutes. You can do so by calculating your premium payable using a term insurance premium calculator, filling out an online application form and completing the purchase by paying for the policy online.

3 It can repay debts. The high sum assured amount of the term plan ensures that a variety of liabilities can be settled in case the policy holder is absent in the future. A house loan being repaid, an education loan taken for your children, private borrowings…one may have a variety of debts that can haunt the family in case the primary breadwinner is absent. Instead of creditors harassing one’s loved ones over unpaid debts, one can simply take term insurance to ensure that the sum assured may pay off all liabilities.

4 It can take care of future expenses. Though term insurance does not offer maturity benefits, you can plan its tenure such that it coincides with major life events in the future. In case of your unfortunate demise, you can ensure that your loved ones’ dreams are kept on course with term life insurance. So whether you are present or not, your children can enroll for the study course of their choice, your partner can handle the home and emergency expenses and your parents can have a comfortable retirement.

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