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Monday, May 27, 2024

Factors to Divert Your Mind from Other Insurance to Term Insurance

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Insurance plans provide financial security and protect against financial losses. As such, insurance plans are important and should be bought for the risks that you face.

When it comes to insurance plans, a term life insurance policy is the most basic form of insurance that you need. In fact, it should be the first policy in your financial portfolio to protect against the risk of death. Here are some reasons which make term life insurance the most quintessential of all insurance plans.

1.Financial security against premature death

The risk of premature death is faced by everyone. One day you might be fit and healthy and the next day an accident or sudden illness can lead to your demise. If the breadwinner of the family happens to die suddenly, the family would face a tremendous financial loss. A term insurance policy protects against this financial loss. The policy covers the risk of premature death. If you invest in a term life insurance policy, you can create financial security for your family. In case of your sudden demise, the policy would pay a death benefit to your family that would help them meet their financial needs with ease.

2.Low premium allows high coverage

The premiums of a term insurance plan are very low. As such, you can opt for a high sum assured that would provide financial support to your family sufficiently. Term insurance, therefore, allows you to plan a suitable financial corpus for your family’s financial needs without worrying about the pocket-pinch.

3.The comprehensive scope of coverage

Modern-day term life insurance plans come with a host of coverage benefits. There are many inbuilt riders under the policy and the plans also allow you a choice of coverage options. You can, therefore, get complete protection against accidental deaths or disablements, whole life coverage, critical illnesses or even terminal illnesses under all-inclusive term insurance plans.  Moreover, under many plans, there is also an option for a refund of the premium if you survive till the maturity of the policy. So, you can customize your term life insurance policy and opt for a comprehensive scope of protection from the plan.

4.Tax benefits

Lastly, let’s not forget the obvious tax advantages that term life insurance plans have. The premiums that you pay for the policy are allowed as a deduction under Section 80C up to Rs.1.5 lakhs. The death benefit that your family receives is completely tax-free in their hands. Moreover, if you opt for the return of premium plans, the premiums refunded on maturity would also be a tax-free income in your hands under Section 10 (10D).

Given these reasons, you should turn your attention to term insurance plans. Go online, compare insurance policy and then choose the most suitable plan for your coverage needs. When you compare insurance policies, compare the premiums vis-à-vis the coverage offered by different term insurance plans. Opt for the most optimal sum assured so that your family is not left wanting in your absence.

A term plan is a must-have and you should ensure your family’s financial well-being by investing in a suitable policy, today!

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