What is the Importance of Term Insurance for Couples?

How is Term Insurance Beneficial for Couples?
Endnotes

You would be ecstatic to begin your life together as a newlywed pair. Now that you've formed a team, there are a plethora of opportunities available to you. While embarking on this new path is exhilarating, it is essential to be prepared for any life setbacks and misfortunes. The passing away of one partner can be emotionally and financially devastating. This is why proper life insurance coverage is necessary to safeguard against this risk. Unfortunately, due to a lack of understanding about the need of having life insurance coverage, a considerable portion of the Indian population remains uninsured. Hence, the following article aims to convince you to purchase a suitable term insurance policy for yourself and your spouse by highlighting the importance of a good plan.

How is Term Insurance Beneficial for Couples?

Here is the list of reasons which argue in favour of purchase of a term insurance policy for a couple.

Affordable

Most people get married in their mid-20s or early-30s. And it must be noted that a term insurance policy purchased at a young age can help you get higher coverage at affordable prices for a more extended period. This is because young adults have a lower mortality rate than mature or older folks. Moreover, young people are also clear of lifestyle illnesses such as high blood pressure, diabetes, and other medical problems, making it less probable to fill early claims with their insurance companies.

Maintain Changed Lifestyle

When you get married, your expenses skyrocket since there is a significant difference between living as a bachelor and a married person. The number of dependents, such as your spouse and children, grows. Therefore, income loss as a result of a tragedy might be severe. Thus, in the event of an unforeseen incident, a term insurance policy might assist in replacing income. This ensures the continuation of the current lifestyle of the family even after the sole breadwinner passes away.

Loan Repayment

Married couples may take out large loans to purchase a home, a vehicle, and other items. In the event of one partner's sudden death, the whole loan repayment obligation will fall on the other. With a single salary, paying off a mortgage would be difficult, and the financial strain would be too much to bear. As a result, you may have to forsake the home. Here, a term insurance policy can shield you from large loans and other potentially financially devastating situations.

Tax Benefits

You can get tax benefits with term insurance policies. Section 80C of the Income Tax Act allows you to deduct any premium you pay on your term insurance plan. You can save up to Rs. 1.5 Lakh in a year under because of this advantage. Furthermore, under Section 10(10D) of the Act, term insurance obtained in the event of the early death of a spouse is tax-free under certain conditions.

Endnotes

It is crucial to ensure the financial security of your loved ones in the face of an unfortunate event, and a term insurance policy gives you that chance. So, it is essential to understand the gravity of a good plan and grab the opportunity before it is too late.