In today’s uncertainties of life, it is very important to have a term insurance plan so that you can provide financial security to your family. It is one of the most cost-effective methods to mitigate the risk in case of an eventuality. With the minimum premium rate, a term insurance plan provides higher life coverage to the family of the insured in case of his/her demise.
Besides this, there are many other benefits of investing in term insurance plans, let’s take a look at some of it.
One of the major advantages of investing in term insurance plans is that, as compared to other insurance products, a term insurance plan provides very high coverage at a very affordable premium rate. For instance, a plan of Rs.1 Crore will only charge a premium of Rs.7, 400 per annum if you buy one at an early age. Thus, you can provide financial protection to your family by investing a minimum amount on the term insurance plan.
In case of an uncertain demise of the insurance holder, a term insurance plan not only provides financial coverage to the insured’s family but also take care of their financial liabilities. The higher sum assured amount helps the beneficiary to maintain a good lifestyle and fulfil the financial goals of life, even in the absence of the breadwinner.
Another benefit of investing in term plans is that it offers flexibility. You can compare the wide range of online term insurance plans and zero in on a plan which best suits your requirements. Moreover, most of the insurance providers offer the option to customize the plans as per your needs.
The tax benefit is another major advantage offered by the term insurance plans. The premium paid towards term insurance policies up to a maximum limit of Rs 1.5 lakh is applicable for tax exemption under Section 80C of the Income Tax Act, 1961. Thus, along with the death benefit offered by the term insurance plan, you can also save on taxes on the premium paid towards the plan.
Apart from the basic coverage offered by the term insurance plan, it also offers additional rider benefits in order to increase the coverage of the policy. You can purchase these riders by paying an extra premium amount along with the basic premium of the policy. Some of the riders offered by the term insurance plans are:
With the plethora of benefits offered by term insurance plans, every individual must consider investing in the term insurance plan. This will take care of the core financial needs of the family in the event of uncertainty or death. However, in order to gain the maximum benefit of the plan at an affordable premium rate, it is always advised to customers to compare various plans online and then zero in on a plan as per your requirement.
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