Posted by If you are looking to invest in a life insurance policy but are facing difficulty trying to wrap your head around complicated life insurance jargon, don’t worry. We can help you figure out the policy that suits your needs best. There are various policies you can choose from, the term insurance policy is the most popular among them.
Term Insurance is considered to be one of the purest and simplest forms of life insurance policy. It lasts for a specific time frame or ‘term’ and offers a high life cover at minimum premium rates. In case of an unfortunate incident during the specified time frame the company guarantees a complete payout and your nominee shall receive the assured sum of money. It helps to make your family financially stable and secure in your absence. Besides that, there are many more advantages that come with getting term insurance. Here are some of the advantages of investing in a term insurance policy.
Advantages of Term Insurance
- Financial Support for Your Family
Life is unpredictable. An untimely death can upset all your financial goals and can leave your family in jeopardy. But with a term insurance plan, your family can be guaranteed adequate financial support after the insurer’s death. It offers you the highest sum of money with a nominal premium. There is also zero stress on the family’s income after death. This means your family doesn’t have to take the trouble to navigate the complicated investment maze to secure a regular income after receiving the lump sum amount of money from the insurance company. The term insurance policy can help your family to generate a monthly income out of the insurance money. By making timely settlement claims and helping your family generate income from the assured amount, the term insurance can make your family’s life easy and stress-free in your absence.
- No stress on your budget
One of the key reasons to buy term insurance online is that it is the most cost-effective plan available in the insurance market. Its affordability attracts thousands of customers as it provides adequate financial cover to their families at an affordable rate. It doesn’t weigh heavily on your budget and you can easily work out the math to build your financial strategies around them. The monthly premium payments may cost you as low as Rs. 834 a month or Rs. 10,000 a year. That is perhaps cheaper than the monthly electricity bill of your family.
- Return of Premium
Term insurance policies usually do not offer maturity benefits. However, if no harm were to come to the policyholder during the term they can receive all the premiums back with added tax benefits. This way you do not lose the premiums that you have paid throughout the years. This makes it an attractive deal for policy buyers who are looking to buy a term insurance policy and are also keen to receive their money back after their tenure.
- Illness Coverage
If you are a terminal patient with a critical illness then the expenses of getting the required treatments can get you seriously drained of your financial resources. And a sudden death might leave your family members high and dry. Through a term insurance policy, you can get critical illness coverage by availing of add-ons or riders. With this policy, you can easily pay for your necessary treatment without exhausting all your savings. Your family can easily sail through even if you are affected by a serious life-threatening illness such as cancer or a heart attack. With the policy covering their household expenses and children’s education, you can take the time to relax and recover from your illness.
- Covers your Spouse as Well
If your spouse is a non-earning member of the family she might be at an increased risk of being in financial jeopardy in case of your unfortunate death. You can eliminate all your worries by getting a term insurance policy that is capable of covering not only an earning member such as yourself but your non-earning spouse as well. The policy gives you the option of joint cover. Joint cover means that both the partners are owners of the policy and are equally entitled to the benefits that come along with it. In case, anything unfortunate happens to any of the partners, the family doesn’t suffer any financial crisis. This means that with a good term insurance policy in hand, the homemaker also gets to enjoy the security that comes with the policy.
- Tax Benefits
There are also tax benefits that you can avail of under Section 80C. The deductions offered under Section 80C exempt the sum received as death benefit from tax according to the Income Tax Act, 1961. It is considered to be one of the most popular tax-saving tools. Under this section, you can receive a tax benefit of up to 1.5 Lakhs for the premiums paid for buying the plans.
- Offers Rider Benefits
As your life earnings increase a majority of your life insurance policies offer several other additional benefits. These benefits are called riders.
Term insurance plans serve the purpose of being far more than just a comfortable survival plan for your family. It gives them the strength to move forward in case of untimely tragic accidents by giving them the financial security that is ever so necessary. They remain as the ray of hope for many families and will continue to be so for years to come.