5 Reasons You Must Invest in a Term Insurance Policy
Life can be unpredictable and uncertain. Understanding this, it is essential to secure our loved ones against any financial emergency that may arise, especially in an unfortunate event when we may not be around. Getting a term insurance policy can be the ideal way to do this. If you are wondering how a term insurance plan can help you, here are some advantages of term insurance that will help you understand its importance.
Benefits of term insurance plan
- Assured financial security:
Term insurance offers an assured payout in the case of an unfortunate event leading to the premature demise of the Life Assured. This payout is paid to the nominee of the Life Assured, who can be a child, spouse, parent, or anyone else that you want. The money is given in a lump sum or in the form of regular payouts and can help a grieving family in their hour of need. This ensures that your loved ones have a financial blanket to rely on and carry on with their lifestyle no matter what.
- High sum assured at affordable premium rates:
One of the benefits of a term insurance plan is that it is extremely affordable. Typically, term insurance plans are pure protection plans that only cover the loss of life during the policy term. This is why they charge a relatively lower premium and offer high sum assured amounts that can cater to the needs of your family members for a long time. Purchasing this affordable tool does not hamper your present budget and, at the same time, lets you plan for the future.
- Tax benefits for additional savings:
Not many people know that a term plan policy can help you save money. The premium paid towards the premium of a term plan qualifies for a tax deduction under Section 80C of the Income Tax Act, 1961. You can claim a total tax deduction of up to Rs. 1.5 lakh in a financial year and save up to Rs. 46,800 annually by simply buying term insurance (terms and conditions apply). Additionally, the insurance payout given to the nominee is also entirely tax-exempt under Section 10 (10D) of the same act.
- Protection from creditors:
Your debt liabilities can create hassles for your family members in case an unfortunate incident were to happen to you. If you have pending loans, the responsibility to pay them will fall on your next of kin. This can be overwhelming in an already tense situation. However, by purchasing a term insurance plan, you can leave behind enough funds that can help your family members settle all your debts. If you have any ongoing loans, you can get a suitable sum assured that can suffice for the repayments.
- Peace of mind:
A term insurance policy can offer you peace of mind. It lets you live a stress-free life as you always have a fallback in the form of a well-planned strategy for the future well-being of your family. A term plan policy secures the future of your children. It allows them to get a good education and have enough funds to pursue their dreams. It can help your spouse and parents with adequate savings for their requirements. The peace of mind of knowing that your dependents will be financially secured in your absence can provide you with unparalleled happiness.
To sum it up
There are several useful features of term insurance. It helps you save money and plan for the future in a systematic and easy manner. Moreover, there are different types of term insurance plans that you can choose from – some even offering benefits on Survival and Maturity. So, we encourage you to not delay purchasing a good life term insurance policy and start living a financially secured and stress-free life.
To know more about our plans and which one suits you best, we request you to fill out your details here and one of our experienced advisors will call you back.
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