=You might be that one person among millions who find it unnecessary to buy a term insurance plan! It’s good to listen to what your brains have to say. But, it’s best to follow your heart! C’mon don’t be selfish enough to do only what you feel. Don’t you care about your beloved family? Don’t you bother about your family’s basic needs and comfort in your absence? Buy term life insurance while you and your family lead a stress-free life.
Believe me, to insure our family for days when we might not be around, there’s nothing better than a Term Life Insurance.
Did your investment advisor tell you to buy one too? Read on to know the benefits of term insurance.
Let’s Discuss the Meaning of Term Insurance
A term insurance plan is an insurance plan with a death benefit that is availed only for a certain number of years. This tenure is fixed. These are plain vanilla and no-frills life insurance plans. If the insured suffers death during the policy period, the nominee would receive the sum assured either in monthly instalment or in lump sum or a combination of both.
But, remember benefits of term insurance are possible only post the death of the insured during the policy tenure. In case, the insured outlives the policy period, benefits of term insurance becomes ZERO.
Say for instance, if you buy a term insurance plan of Rs.1 crore for 20 years, and nominate your wife as a ‘beneficiary’, your wife will receive the sum assured amount [of Rs.1 crore] in case something unfortunate happens to you. This term insurance plan will ensure that your family is well taken care of in the event of unfortunate circumstances.
Benefits of Term Insurance Plan
Just as one size doesn’t fit all, you need to understand your requirements before zeroing on any term insurance plan. Listed here are some of the important benefits of term insurance. But, remember, buy a term plan as per your requirement only!
- Cheapest premiums
It is advisable to buy a term insurance plan at an early age. Buying a term insurance at an early age would not only fetch you higher returns, but also the term insurance premium would be relatively lower, because your chance of living longer also increases. Thus, your premium paying capacity also extends consequentially. As a result, the total amount of term insurance premium to be shelled out gets divided over a number of years.
- Offers financial security
Term insurance plans are not investment plans. Your unfortunate death would leave your family devastated not only emotionally but also financially. They are meant to provide a financial security to your family in your absence, especially if you are the only bread winner.
Your liabilities are well taken care off, if you pass away during the policy period. It is advisable that you opt for a cover that is 10 times your annual income, considering inflation as a major factor!
- Low claim rejections
Usually, it is said that if the term insurance policy is active for 10 years or more, there are very less chances of claim rejections. At the same time, it is very important to disclose all the financial liabilities and health conditions to the insurer at the time of policy issuance.
Recently, IRDAI has made it mandatory for all the insurance companies not to reject any claim within 2 years post the policy activation, stating non-disclosure of facts.
- Tax benefits
Term insurance gives you a tax benefit!
Yes, the good news is that you don’t only save tax on the premiums but also on the returns that you get under Section 10(10D), under the Income Tax Act. The death benefit or the amount that you receive post maturity of the term insurance plan, is again completely exempted under this section.
Section 10(10 D), under the Income Tax Act, if your premiums paid exceed 20% of the actual sum assured, the maturity amount would be taxable! Also, all term insurance policies offer tax deductions under Section 80C of the Income Tax Act, 1961.
One of the benefit of term insurance plans is they offer flexibility. You can buy a term plan online or offline as per your convenience.
So, grab a term insurance policy online TODAY, if you haven’t bought one!
Riders are like add-ons that enhance your basic term insurance plan. They provide extra benefit at a very affordable cost. Some of the important riders are premium waiver, critical illness, permanent disability and partial disability, accidental death etc.
Remember, riders are not mandatory to buy. You may wish to buy one as per your requirement!
So, guys, what are you waiting for? If you do not wish to compromise on the comfort of your beloved family post your demise, go get one term insurance plan TODAY! There are online broker portals like who promises to offer you top-notch after-sales services, customized quotes just as per your requirement and pocket-friendly quotes! With the host of benefits offered by a term insurance plan, let your family live a stress-free and financially secured life while you pass away..