Life is short, but your savings shouldn’t. You must have dreamed about that perfect family dream or may have been living the best of years with your loved ones but have you ever thought what will happen to them when you are not around? Who will handle your responsibilities? How your family will stabilize their financial condition?
Such questions may sound a bit over-the-top, but you can’t deny the reality stuck to them. One or the other day, you will have to sit and plan about securing your family’s future. Term insurance and savings plan will become a part of your daily dictionary, and you will start caring more.
Thankfully, there are numerous insurance companies and investment firms that offer innovative options like term insurance as per your needs. However, before searching for the best term plan in India, it’s important to understand the benefits of term insurance.
Below are the top six reasons why buying term insurance is beneficial. Take a look!
1. Financial Security
First things first! Buying term insurance ensures that your family remains financially stable even if something unfortunate happens to you. The cover will not just take care of the family’s lifestyle expenses but also pay for the liabilities like the unpaid loan of home or car. In simple words, your term insurance will take care of your loved ones’ financial needs.
You just need to pre-calculate the amount that you wish your family to receive as a benefit. You can also refer to a financial planner or use the term insurance calculator available online.
2. High Life Cover at Low Premium
Unlike other life insurance products, term insurance come at low premiums especially if bought online. You may have to pay only one percent of your annual income to get a life cover.
Some term insurance plans from financial institutions like Future Generali offer a life cover of Rs. 1 crore at just Rs.16/day*. To know more, just explore the website. Moreover, the sooner you buy term insurance, the lower monthly premium you will have to pay.
3. Simplicity
Understanding term insurance plans is a child’s play. So, if you are someone who is not able to understand the complexities of term plans, going for term insurance is a great choice. This is a pure life cover in which you need to pay premiums for a fixed duration. You can easily check the best term plan in India online and buy the one that suits your requirements the most.
4. High Flexibility
Flexibility is another significant benefit of buying term insurance. You can also choose the coverage options that your beneficiaries will get in the event of your sudden demise:
- The lump sum benefit
- Lump sum benefit along with a fixed monthly income
- Lump sum benefit along with a growing monthly income to beat inflation
What’s more? Well, many term insurance plans also let you decide premium payment options according to your convenience. For instance, apart from annual, you can pay your term insurance premium in any of the following modes:
- Monthly
- Quarterly
- Semi-annually
5. Additional Benefits
Over the years, financial institutions have introduced various benefits to suit the growing needs of the customers. Rider options in term insurance are one such example. To improve the financial protection of your family, you can add riders which come with a nominal fee.
Some riders that you can add in your term insurance are partial or permanent disability, critical illness, death due to the accident to name a few. However, it is advised that you should opt for a rider if there is a genuine need and carefully read the documents while buying a rider.
6. Tax Benefits
Yes, you read it right. Your term insurance plan won’t just secure your family’s future but also give you tax benefits under section 80C and 10 (10D). Here is how:
Under Section 80C
As per this section, life insurance premiums of at least 1.5 lakh per annum are exempt from the Income Tax. However, there are certain conditions specified which you can read before buying the plan.
Under Section 10 (10D)
In case of the demise of the policyholder or when the plan reaches its maturity, the family gets a certain payout. Now this maturity amount or the death benefit is fully exempt under Section 10 (10D) of the Income Tax Act of 1961.
Protect Your Dependents’ Future
Now that you have read the article, it’s time to check out the best term plan in India. Thoroughly do the research and compare the plans available in the market. Also, don’t forget to check the terms and conditions before making the final decision.
