A term insurance plan is an insurance that is taken for a specified period. How does a term insurance benefit an individual?
Simplicity
They are much easier and simpler to understand than insurance plans. Other insurance plans combine risk cover with savings and calculating your finances around a cash value insurance plan is really complicated. But in term insurance you just pay the premium and get covered for the chosen term.
High Sum Assured amount
There is literally no maximum limit for the amount of sum assured that you can opted under a term insurance once you qualify under the norms of the company.
Cheapest insurance
Even with the highest sum assured available, the premiums are extremely low and are easily affordable.
Competitive pricing
The term insurance policy market has become very competitive. There are fewer information problems with term insurance and so it is more price-competitive than other policies.
Flexibility
It is very easy to opt out of a term life policy – you simply stop paying the premium ad the risk cover ceases and the policy ends. Also, most term life plans are “renewable” and “convertible” (into an endowment policy).
Tax benefit
Though the premium is less, it is still eligible for tax benefit u/s 80C.