Term insurance is the most common and pure form of life insurance. It offers financial protection to your family at cost-effective rates. In case you die during the tenure of the policy, the death benefit will be paid to your beneficiary.
Contrary to most life insurance policies, a term insurance plan does not have a cash value; therefore, you can ensure to achieve a guaranteed return from the policy. With growing awareness of the importance of life insurance, people in the country are increasingly investing in it. Term life insurance is one of the most sought-after insurance plans out there and for all the right reasons.
It is Quite Straightforward
When investing in a term life plan, it is important to thoroughly understand all the terms and conditions mentioned within the term insurance policy. One of the reasons people go for a term insurance plan is because it is extremely easy to understand. Since it is a pure life cover, it does not come with an investment component. All you have to take care of is to pay the premiums on time, and you will be covered for a particular time period.
It Facilitates Whole Life Cover
One of the prominent benefits of term life insurance is the whole life cover. The policy extends comprehensive security in which the insured individuals are covered up to the age of 99 years. A term insurance plan assists in reducing the financial burden on your family in case of your sudden demise (the sole breadwinner)
More Coverage With Affordable Premium
Along with being simple to understand, term insurance plans are also cost-effective. When compared to other forms of insurance policy, a term plan can be accessed at cost-effective premiums. You will get the best term plan if you invest in it in your 20s as you will have to pay less in premiums. Similarly, when you buy a term plan online, you are likely to get a lower premium than buying it offline.
Income Tax Benefits
Term insurance plans provide tax benefits under two sections of the Income Tax Act of the country.
Under section 10 (10D), the maturity benefits offered by some of the term insurance online plans and with respect to the TROP are exempted from tax.
Moreover, under section 80 C, you can gain benefits on the premiums paid towards your term insurance policy. If your payment amount is over Rs. 1.5 lakh, then you are eligible for tax exemption.
Rider Benefits
Term insurance policies come with a wide range of rider options that provides extra protection. And the premiums associated with these riders are quite affordable. Accidental death rider, guaranteed insurability rider, waiver of premium rider, etc., are some of the common rider options available.
Final Thoughts
Life is unpredictable, and you cannot expect that nothing will happen to you because you live healthily or safely. A term life insurance policy is one of the most effective ways to secure your family’s future financially, especially when all the members depend on you.