Death is an inevitable aspect of your life. While you might never wish to undergo the trauma of losing a loved one, you can cover your family members against eventualities of life. As the breadwinner of the family, you can protect your entire family with a term insurance. However, there are various term plan options available in the market, which offer financial support over the longest period. Apart from a regular term policy, you can select a smart term plan to suit your dynamic lifestyle needs.

Before purchasing a smart term plan, let’s begin by understanding what smart term insurance is in detail:

A smart term plan allows you to secure your financial needs in the long run. As a policyholder, you can customize the smart term plan based on your evolving needs. Under a smart term plan, your family can receive overall financial protection in your absence. When you purchase a smart term policy, you can use the following benefits to the fullest:

• It offers comprehensive financial coverage under the circumstances like physical disability, and critical illnesses like cancer, heart attack, kidney failure, and so forth. 
• It returns all your premium amount at maturity if you survive the smart term plan.
• It provides flexibility to select the premium payment term based on your convenience. 
• It allows you to increase your term coverage when you reach the milestones of your life. 

Besides financial security, you can select a smart term policy for numerous other reasons. Let’s go through these top five reasons given below to know why you should get smart term policy:

1. You can obtain the return of premiums

Regular term policy offers only a death benefit to your loved ones in your absence. However, a smart term policy provides not only death benefits but also survival benefits. Your insurance provider can return your entire premium amount in the form of a survival benefit. After receiving the premium amount at maturity, your smart term policy can be terminated. Usually, the return of premium option is available on the death pay-outs of only smart term insurance. 

1. You can avail life stage benefits

The life of every individual can be divided into different milestones. While your milestones in your 20s might be higher education, it can gradually change to getting married and having kids as you reach your 30s. Therefore, your financial requirements can change as you cross every life stage of your life. To protect such life stages, you can increase your coverage amount based on your financial needs or responsibilities. Under a smart term plan, you get the option to choose ‘life stage add on sum assured’ benefit. 

1. You can decide how your family receives the death payout

Unlike regular term insurance, a smart term plan is a flexible option, which allows you to decide how your family should get the coverage amount after your demise. A smart term plan gives a chance to select from the following options mentioned below:

• Your loved ones can obtain a lump sum amount after maturity.
• Your nominees can receive a monthly income.
• Your family can increase the monthly amount after a specific period to beat the effects of inflation.
• Your beneficiaries can exceed the coverage amount after crossing each milestone.

1. You can receive financial security against critical illness and accident

As a policyholder, you wish to receive financial security against every contingency like a medical emergency or any other health condition. With a smart term plan, you can obtain an immediate pay-out if you are diagnosed with a critical illness, physical disability, and so on. Many reputable insurance companies might cover you against 40 or above critical illnesses. This additional benefit of a smart term plan can provide a lump-sum amount immediately to ensure a medical aid at the right time. 

1. You can select between multiple premium payment options

A premium is an essential component of every smart term plan. Ideally, you pay the premiums to continue receiving the term insurance benefits over the long period. Unlike regular term plan, you can choose between multiple premium payment options based on your convenience under a smart term plan, which are as follows:

• You can pay a lump-sum amount by the end of every year. 
• You can pay the premium amount for a limited period.
• You can pay the premium amount regularly throughout the tenure of your smart term policy.

In a nutshell, the primary objective of a smart term plan is to provide financial protection to your family members. Hence, it offers death benefits as well as survival benefits to ensure you and your loved ones live comfortably without any financial burden. Before purchasing a plan, identify your financial needs, and select a smart term plan accordingly.