Pure Term Insurance: Wide Coverage at Low Premiums

Indeed, holding term insurance provides policyholders peace of mind, knowing their family members will be cared for in their absence. As we know, the whole purpose of buying term insurance is to get a life cover and financial security for his loved ones.

There are different types of variants in term insurance, and the most common is a pure term plan, even though most people are familiar with it. It is the same as basic term plans and pure life insurance products offer life coverage for a specified tenure.

In case of the policyholder's demise throughout the policy tenure, the beneficiary gets the sum assured payout. It allows policyholders to protect the life of their loved ones financially regardless of what life has planned for them. These plans offer a comprehensive sum assured amount at affordable premiums.

What is Pure Term Insurance?

Pure Term Insurance is a type of life insurance policy that provides coverage for a fixed number of years. In the event of the policyholder's sudden demise during the policy term, the nominee will receive a death benefit. However, this variant of term insurance has no survival benefits, which means if the insured person outlives the policy term, they will not get maturity benefits.

Moreover, this plan is designed to offer financial protection. The premium for a pure-term insurance plan is typically more affordable than other sort of life insurance products, making it an affordable option for many individuals.

For instance, Prateek, a 25-year-old man living a healthy life with no alcohol or history of medical problems, can purchase a term plan that provides Rs. 1 crore coverage for 40 years at Rs. 984 per month.

What is the Point of Buying a Pure Term Insurance Plan?

As mentioned above, a term plan or pure term plan is quite similar, and they both provide a life cover to the insured person's family members. Despite having several features and perks, people still need to learn about the importance of term insurance. Here, we've listed three crucial points about buying a pure-term insurance plan below.

To Secure Your Loved One's Life

Whether you're a family breadwinner or want to help your parents secure a better retirement or pay for your child's higher education, term insurance is an ideal choice. However, in case of your demise, your family gets an assured amount as a death benefit.

To Protect Your Assets

Most youngsters these days prefer a loan option when they need immediate funds. But if something happens to you during the loan tenure, then your family may have to deal with the load as well as the loss of your income. If they cannot repay the loan, the bank will cease your assets and sell them on auction.

To Manage the Risks Associated with Inflation

It has become increasingly common to hear about the growing prevalence of lifestyle diseases and severe health conditions like heart disease and cancer. With a term plan, you can receive financial assistance when dealing with a diagnosis and during recovery.

Term Insurance - Benefits

Key Features of Pure Term Insurance Plans

Low Entry Age

Term Insurance has a low entry age, so you're eligible to opt for a term plan at just 18 years. Policyholders are allowed to purchase plans for themselves as well as their loved ones on reaching adulthood.

Long-Term Protection

Term plans are a type of life insurance policy that offers whole-life coverage and gives policyholders peace of mind, knowing their family members will be cared for in their absence.

Flexibility

With a term insurance plan, insurers offer policyholders the flexibility to select the sum assured amount per their needs when buying.

Flexible-Premium Payment Options

With term insurance policies, policyholders have the flexibility to select how they want to pay the premiums. However, you can choose to pay your premiums yearly or half-yearly or even make monthly payments.

Easy to Buy

In this fast-paced digital world, it's easy to buy a term insurance policy that gives peace of mind. Some insurers offer online and offline ways to buy term life insurance without a medical exam.

Liability Protection

In case of policyholder demise, the insurer provides a death benefit to their family members. It offers financial assistance to the insured person's family and helps secure them against several liabilities.

Who Can Buy Pure Term Insurance Plan

A pure-term plan has many features, here is the list of individuals who must buy the plan to get the maximum benefit of these plans:

Claim Settlement Process for Pure Term Insurance Plans:

This is a hassle-free process designed by the insurance company, which gives policyholders a smooth experience and takes very less time to settle. Here are the steps that a person should follow to settle the claim:

Difference Between Pure Term Insurance And Term Plan With Return of Premium (TROP)

Conclusion

Pure Term insurance is the same as basic term plans and offers life coverage for a specified tenure. It is an affordable life insurance product offering comprehensive coverage at low premiums. However, the insurer provides the policyholder the flexibility to pay the premium yearly or half-yearly or even make monthly payments.

Term Insurance Companies