A life insurance policy is a primary requirement for all. Irrespective of your financial status, a good life insurance cover is vital to protect your family from financial emergencies that they may suffer in the event of your untimely death. As the head of the family, you would surely want to ensure maximum protection to your family members and keep them safe from all financial obligations even when you are not around. Buying a life policy can help you in this regard. A death benefit received can be used to pay the loan and other bills.
Today, insurance companies offer a variety of life insurance to suit the varying needs of the people. With so many options available, it can be challenging to choose the best one. Different insurance plans come with different features. Some provide simple cover for the premium you pay, whereas some provide additional features like pensions, survival benefits, etc. There are a few life insurance plans available that are specially made to provide financial security to the family in case of any harm to the policy holder’s life.
One of the best life insurance policy options you can consider buying to ensure your family’s security is a term life insurance plan. Term life insurance provides coverage for a specific time period. Besides being inexpensive, it has many benefits. Read on to know these features.
Simple process – Understanding term insurance is easy. It is purely a life cover plan and has no insurance or profit components involved. All you need to do is pay regular premiums against which you get a cover for a fixed duration. You can easily buy a term insurance plan through an advisor or online.
Higher life covers at lower premium rates – Term insurance plans are usually available at reasonable prices, especially when you buy online. Additionally, you can get the coverage at a lower premium if you buy the cover at a young age.
Tax benefits – The decision of purchasing a life insurance plan should never be based on tax benefits. Although, the term insurance plan provides tax benefits on both premium as well as payouts. Benefits under section 80C of Indian Income Tax Act provides life insurance up to 1.5 lakh per annum exempt that are subject to fulfilment of specified conditions.
Death benefits – Term insurance provides the highest death benefits at affordable rates. Not just that but it also lets you lock-in your premiums at a later stage. You can also combine the lumpsum term insurance plan with monthly income plan. This will ensure the financial security of your family even in times of inflation.
Term policy riders – There are various options in term policy riders to choose from like accident benefit rider, critical illness rider, etc. that adds to the benefits of a term insurance policy. Waiver of Premium rider lets the policyholder stop paying premiums in case of any critical illness or dismemberment. The cover continues in this case without lapsing the policy.
Term insurance policy is the most basic form of life insurance policy plans and can benefit you in many ways if invested rightly in time.