Term insurance programs are sometimes misunderstood as normal savings plans with a maturity benefit. When they learn that there are no such rewards when they reach maturity, they believe it is a waste of money.
This isn’t accurate, as we encounter a lot of undetermined deaths every year due to traffic accidents and medical reasons. If you are the sole breadwinner in your family, you should consider purchasing Term Insurance so that your loved ones are not left with the financial burden of everyday costs if you pass away unexpectedly.
Term life insurance is a terrific product that allows you to deposit a small amount and be insured for a large sum assured amount. This money is subsequently handed to your family in the event that you die within the policy’s term, allowing them to continue living their normal lives without having to make sacrifices.
Let us discuss the five fabulous reasons to buy term life insurance today:
Low Premiums and High Sum Assured –Term insurance is the only type of life insurance that provides excellent coverage for the lowest feasible prices. You can get a Rs 1 crore coverage policy for which you would be required to pay a small fee of Rs 30-40 each day at most. If you purchase this coverage when you are young, the premium price may be considerably lower. As a result, it is usually a good idea to purchase term life insurance as soon as feasible. A term life insurance policy provides financial stability to your family while you are away and serves as a backup plan in the event of your untimely death. The insurance coverage amount assists your children in realizing their aspirations, as well as your family in managing their daily expenses and repaying any outstanding debts without putting them under further financial strain.
Tax Benefit – Section 80 C of the Income Tax Act of 1961 provides a tax relief. You can purchase term life insurance and receive a tax benefit, making it a win-win situation. Your nominee will receive the sum insured amount if you die within the policy term, which is also tax-free under section 10 of the Internal Revenue Code (D). Your nominee can easily deposit the guaranteed cash into a bank or other reputable bond and earn a good rate of interest to cover monthly costs. Though the primary goal of term life insurance is to financially protect your family in the event of your death, it can also help you save up to Rs 1.5 lacs in taxes.
Long Term Goal Achievement – Because term insurance does not provide a maturity benefit, it may not assist you in the short term, but it will help your family reach their long-term goals. For example, your children may have dreams that will not be realized while you are away. In addition, if you are not with your family, they may endure financial hardship. As a result, term life insurance serves as a financial shield for your family. Your children will be able to pursue their goals, and your family will be able to live comfortably thanks to the sum assured.
Flexible and Convertible – Term life insurance is the most basic type of policy, but it is also the most adaptable. There are several riders available, including as a critical illness rider, an accidental death rider, a waiver of premium rider, a family income benefit rider, a kid term rider, a return of premium rider, and so on, that increase the base insurance coverage while providing a secure financial future. You can personalize your term plan by adding numerous riders and customizing it according to your needs. By adding a term conversion rider to your term insurance policy, you can convert it to a permanent coverage. A rider will add a small amount to your base premium, but the benefits far outweigh the additional expense.
Mind Tranquility – Term insurance offers a number of advantages, including financial security, tax benefits, and disease coverage, but most importantly, it gives you peace of mind. You can’t anticipate the future, but you can at least protect your loved ones’ financial future. Today, everyone is agitated and unhappy for a variety of reasons, but the majority of people are concerned about their financial security. Being the family’s sole earner might put a strain on your mind because it’s heartbreaking to think about your family when you’re not there. In such a case, a term life insurance policy provides you with piece of mind. Because of the rising rate of inflation, it would be ideal if you chose a coverage level that is greater than 10-15 times your yearly wage.
To summarize, we recommend that you consider your loved ones before selecting the finest term insurance coverage. Customize it to meet your specific requirements and purchase term life insurance today! If you still have questions or concerns about the Term Life Insurance plan, go to BimaKaro.in for expert guidance!