Any life-altering event can stress you and your family both emotionally and financially. In such a situation, if anything were to happen to you, your loved ones will be left with nobody to rely on. And, if you are a breadwinner of the family, the financial impact would be hard to manage. Hence, it would be best if you protected them financially at all cost. This is where a term insurance plan comes into picture.
Ideally, a term plan offers financial security to your family members in case of your death. Along with annual renewable term plans, insurers also offer five-year term insurance policy. Let us explore five-year term life plans in detail.
As the name suggests, five-year term insurance offers coverage to the insured individual for a term of five years. It is one of the shortest term insurance plans available in the market, along with annual renewable term plans. However, five-year term insurance plans offer the option to convert the policy after it expires. But the five-year term plan you have chosen must include the conversion option.
The functioning of the five-year term insurance plan is quite simple to understand. Once you purchase the policy, you have to pay the premiums. This can be done either as a single term payment or as any other premium payment mode available with your chosen insurer. Later, in case of your untimely death, the death benefit is paid to the beneficiaries of the policy. Note that this plan does not offer maturity benefits if you survive the policy tenure.
Let us look at various features offered by a five year term life insurance plan.
Some of the standard five-year term insurance features and benefits are as follows
Know that the policy features and benefits may differ depending on the insurer you choose. Hence, it is recommended to check the policy coverage and exclusions carefully before buying one. It is also recommended that you compare term insurance plans before deciding which one you should buy.
A five year term insurance plan is ideal for people who want to provide financial protection to their family. With this plan, one can take care of immediate financial liabilities. So, if the policyholder dies an untimely death, the insurer will pay the sum assured amount to the beneficiaries of the policy. That way, the family members do not have to face any economic burden in the absence of the primary income earner.
Moreover, this plan is also recommended for people who want to take care of their child’s education. Your child can continue their education regardless of whether the insured (the main person funding the education) is there or not in the future.
Term insurance plans are mainly bought to provide financial security to your loved ones in case of your death. You can browse different term insurance plans at Finserv MARKETS and pick a plan that best suits your needs. Also, consider the rider benefits offered under the term plan to enhance the coverage of the policy at a nominal rate.