Not everyone is aware of the benefits of term insurance, and others believe it is too complicated to comprehend. Few of us believe they are in good health and that nothing bad can happen to them. But are you truly prepared for the unexpected death? Have you planned for your family’s future? Prepare right now! Ensure your family’s financial stability in the event that you are unable to provide for them.
Term insurance is one type of comprehensive financial support that can ensure your family’s well-being even after your death. Before we get into the benefits of this sort of insurance, it’s important to understand what term insurance is.
What exactly is term insurance?
Term insurance, also known as pure protection plans, are basic insurance policies that provide the policyholder with life coverage for a set period of time. If the insured or policyholder dies during the term period or while the policy is still in effect, the entire amount is paid to the nominee. This provides a substantial level of insurance coverage for a relatively modest payment, which can be paid in a lump sum or on a regular basis depending on the policy selected.
According to the plan’s conditions, upon the death of the policyholder, the nominee is entitled to the agreed-upon sum, commonly known as the “Sum Assured.”
Let us now look at the many benefits of term life insurance that one can obtain.
Low premiums and comprehensive coverage
This is thought to be one of the key benefits of term insurance because the insurance coverage is very high in comparison to the term insurance premium paid. Furthermore, term insurance prices are much lower if purchased at a younger age. For example, for INR 17 a day, a person can obtain term life insurance coverage of up to 1 Crore.
Section 80C of the Income Tax Act of 1961 exempts premiums paid for term life insurance policies up to a maximum of 1.5 lakh from tax. The amount received in cash by the beneficiaries in the event of the insured’s untimely death is likewise tax-free under Section 10(10D) of the Income Tax Act.
Disability and critical illness insurance
A few term insurance policies, such as iProtect Smart, also cover disability or severe illness. You can acquire a lump sum on your first diagnosis of any severe illness by adding a small amount to your premium. In the event of permanent and total disability, the insurance company pays your premiums if you are unable to do so, ensuring that your life insurance coverage continues.
Additional security advantages:
Insurance plans provide a double reimbursement to the deceased’s family in the event of an accidental death term. For example, if the insurance provides a life cover of one crore, the family will be entitled to a payment of two crores in the event of an accidental death.
To sum up:
When compared to other types of insurance, term life insurance plans are the most straightforward. Simply select the term and pay the fee. The assured sum is paid out if the insured dies during the time period. You can also look for different types of life insurance coverage that will meet your needs. While doing so, choose a plan that will keep your family financially secure in your absence.