Don’t Buy a Term Insurance if You’re in These 3 Conditions

Term life insurance coverage provides a death benefit in the event of an untimely demise and can help pay off your mortgage or other debts, cover funeral expenses and help you provide financially for your spouse or other dependents.

What is Term Insurance?

Term life insurance is an insurance policy that only provides coverage for a certain number of years, and then expires. If you’re healthy, it’s not always the best choice, especially because it typically costs more than other types of life insurances.

However, there are some situations where term insurance is the best choice for you. Here are three cases when you should consider getting it:

1. You don’t have children who will rely on your income after your death

2. You can afford to pay extra for permanent insurance instead

3. Your employer offers low-cost permanent life insurance as part of their benefits package

Term Insurance: 3 Benefits You Might Not Know About It

1) Naming a beneficiary

Naming a beneficiary is one of the most important decisions you can make when it comes to your term insurance. Your beneficiary will receive the proceeds of your life insurance policy in case something happens to you.

This person will be able to use those funds for whatever they need or want, and they don’t need to wait until the end of their natural life span to access it. The money they get here could help them with everything from paying off a house mortgage, buying a car, to going on a vacation.

2) Affordable premiums

Term life insurance is an affordable type of insurance that can help you protect your family’s future. Term insurance premiums are based on the length of time you would like to be covered for, and the amount of coverage you want, so it’s easy to find a plan that fits your budget.

Term life insurance provides a lump-sum payment in case you die during the term period, which may help your family cover funeral costs or pay off debts left behind. It also provides income for your family members if they’re dependent on you for support.

3) Flexible payment options

There are many benefits to term insurance that people don’t know about, one of them being that you can purchase it every month. This means you can pay just enough each month to keep up with your payments, and then stop when the term ends. This is great for people who don’t have a lot of money or who would like to pay the premiums for a year at a time before deciding if term insurance is right for them.

However, there are conditions under which it makes sense to buy this type of policy and times when it’s better to choose a whole life insurance or universal life instead. Here are three situations in which you shouldn’t buy term insurance protection:

1) If you don’t want life insurance

If you don’t want life insurance, term insurance is not for you. It’s designed to protect your family, should you die within the next few years.

But what if it’s too expensive? What if you have no dependents? Or what if your employer already offers it as a benefit? In these cases, term insurance may not be worth it.

2) If you die early and unexpectedly

Term insurance provides coverage for a specified period and is most often used as a part of an estate or retirement plan. In many cases, you may decide it makes sense to buy term insurance when you are young and healthy.

However, there are three situations where it may not make sense to buy term insurance. It may not serve you in the best way if you die early or unexpectedly (or know somebody who will). The other two situations are if you want protection from inflation or if you want protection from outliving your money after retirement.

3) If you can’t afford to make monthly payments on it

If you can’t afford to make monthly payments on it, term insurance might not be the best choice. Make sure you have enough cash flow to cover the monthly payments.

If you don’t think your financial situation will change anytime soon, then it’s worth considering a whole life insurance policy instead. A whole life insurance policy is more expensive up front but less expensive over time because of the cost of living adjustments that are built into its rate structure.

We’re here to help you protect what matters most. With the right Canara HSBC Life Insurance in place, you can rest easy knowing that your loved ones will be taken care of in case something happens to you.

At Canara HSBC Life Insurance, we offer a wide range of products with varying levels of coverage based on your needs and budget. We understand that everyone’s situation is different, which is why we offer premium return guarantees on all our policies like Canara HSBC Life Insurance so that you can feel confident about investing in protection for yourself and your family. Plus, Canara HSBC Life Insurance offers 100% return of premium tax benefits under Section 80C!


If you are planning on retiring early: Term life insurance may not be appropriate for someone who is planning to retire early and needs an immediate lump sum payment upon retirement or as soon as possible thereafter. When deciding whether or not to purchase this type of coverage, it’s important to consider how many years you would need for your savings account balance and other assets such as stock options and 401(k)s.

(This story has been provided by Advertisers. The Hans India will not be responsible in any way for the content of this article.)

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