Reasons Why You Need To Secure Your Family With A Term Plan
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Term insurance plans are getting popular by the day because these plans provide financial security to your family in your absence. Term insurance plans provide a death benefit in case of an unforeseen demise of the life assured during the policy tenure. These plans offer financial support to your family in difficult times, allowing them to fulfill their daily financial requirements and letting them pursue their dreams in your absence.
Term insurance plans are widely known and appraised to provide life cover at low premiums rates. Below mentioned are some reasons why you need to secure your family with a term insurance plan:
Reasons Why You Need To Secure Your Family With A Term Plan
Following are some reasons why you should consider term insurance plan for financially securing your family:
1. Financial Assistance
Term insurance plans provide financial assistance to the family of the life assured by death benefit payout to the family of the life assured in difficult times. The death benefit is payable in case of an untimely demise of the life assured during the policy term. The death benefit can be received as lump sum, regular instalments or part lump sum and part regular instalments as per nominee’s convenience. The death benefit amount can be utilised by the family of the life assured to meet their daily expenses and also help them achieve their goals.
2. Reasonable Premium
Term insurance plans are affordable. These plans provide comprehensive coverage at nominal cost. Term insurance plans are affordable because of their fixed tenures, they can be extended as they are renewable.
3. Additional Coverages
Under term insurance plans you add riders which are additional coverage that can be purchased with the base policy. The riders increase the base coverage of the term insurance policy at an additional premium. You can add a critical illness rider, accidental death benefit rider, waiver of premium rider etc. that will provide you financial protection at different life stages.
4. Availability of Whole Life Cover
Some term insurance plans provide whole life cover. These plans offer comprehensive life cover upto 99 years of age at an affordable cost.
5. Tax Benefits
Premium paid towards a term insurance plan qualifies for tax exemptions upto to a limit of INR 1.5 Lakh per annum under Section 80C of the Income Tax Act, 1961. The benefits payable under the term insurance plan also qualify for tax exemptions under Section 10(10D) of the Income Tax Act, 1961. You can avail tax benefits under term insurance as per Income Tax Act, 1961.
Conclusion
If you are looking to purchase insurance for yourself to protect your family from future financial crises in your absence, then you must opt for Term Insurance. Term insurance offers financial assistance to your family in case of your sudden demise during the policy term. Term insurance offers coverage at nominal cost and offers whole life cover. You can add riders to your term insurance policy to, that will provide you and your family, financial support from the uncertainties of life. It is advised to purchase a term insurance policy at an early age. Term insurance plans are ideal for those who want a financially secured future for their loved ones.
Also read - What is the right amount of life insurance cover for me?
Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.
