Advatages & Disadvantages of Term Insurance
It is very common to hear these days that people just take term insurance for the sake of coverage and invest the rest in the stock market or Mutual Funds. So before you take the decision of just takeing the Term Insurance make sure you read this article till the end. Below I have mentioned the advantages and Disadvantages of having only Term Insurance Advantages & Disadvantages of having only term Insurance Advantages 1) Cost – Effective: in a small amount you get a big cover that would help your family in an unforeseen event 2) Tax Benefit: the premium paid can be claimed as a deduction under sec 80 C. Apart from this, there is no other advantage. Disadvantages 1) It is not meant for those who intend to save money for future financial needs 2) The term plan is not designed to assist in terms of finances when the policyholder is alive. 3) Buying a term plan does not enable you to create wealth whereas an endowment does. 4)