Life is engulfed by uncertainty and it is but impossible to predict what the future holds. This makes it extremely important to make certain wise decisions that with holds the best interest of you and your family. A plan that you must add to your insurance holdings includes a term insurance. The product has grown to be extremely popular over the years due to its ability to mitigate risk in case of an unfortunate event. Above all, it is also affordable and does not create a dent in your finances. It financially protects your family even after you have gone.
Here are 5 reasons 5 why you must absolutely get a term plan:
No-frills plan – A term life insurance is easy to comprehend. Unlike other kinds of insurance plans, the product does not involve several underlying terms and the usage is simple. It requires you to pay your premiums and renders you a life cover for a certain number of years. The different aspects such as the validity of the plan, the premium payable, sum assured, tax benefits and more can be accessed through the plan agreement.
Low-cost – This insurance is cheaper in comparison with other kinds of life insurances. It is not a combination of an investment and insurance. It essentially provides you with just an insurance in the case of an untoward incident, thus, reducing its cost. A term life insurance makes for the cheapest way through which one can protect the interest of his/her family in the event of death.
Tax benefit – Getting a term life insurance also allows you a tax benefit. As under the section 80C of the Income Tax Act, you can avail a term insurance tax benefit on your premiums. Enjoy a deduction of up to INR 1.5 lakhs. Additionally, the type of policy is also covered under the Section 10(10) D. Any amount received as part of maturity of the policy is exempted from tax deductions. These tax benefits can help you make immense financial savings and improve your fund allocation.
Flexible plan terms – The most notable aspect of a term insurance is the level of flexibility that it carries. It enables you to make your choice based on your preference. You can choose to purchase a plan offline through an agent or online. Furthermore, this policy accommodates factors such as your age and lifestyle. The plan can be customized to suit your requirements to enable you a sense of being insured.
Avail of riders – Term insurance plans include riders that you can choose from to make the best of your policy. Riders are top up benefits that you can enjoy by paying extra fees. The charges levied on riders are nominal and can be included to increase the effectiveness of the product. Common riders’ offered with the policy include accidental death, critical illness and disability. It is important to carefully consider the rider before opting for one.
Timely payouts – Term life insurance plans are offered under straightforward terms and this ensures that the claims are made in time. The nominee is not hassled by the claim when the death occurs under normal circumstances. It can be claimed immediately post completion of the essential formalities.
A term life insurance policy carries several advantages that can ease out your financial planning and support its growth. It can serve different expenses that can otherwise burden your family. Thus, this plan makes for a very important and sensible insurance purchase.