Term Insurance is your best option for a safer future – Here is why?
Uncertainties can knock your door at any time in life. And it is quite unimaginable and scary to think about what will happen to your family in your absence. You will never want them to suffer and be in a miserable condition. However, the reality is you will have to face unprecedented situations, accept them and plan accordingly to avoid feeling helpless during those times.
Although making some lifestyle changes like doing exercise, yoga, eating healthy to stay fit are some of the ways to avoid the uncertainties to some extent. However, you also need to be ready with a financial arrangement as your back-up plan. A well-thought financial plan prepares you to handle emergencies and term life insurance is one such product that ensures financial security for your family in your absence. Not only this, but there are also other benefits as well in term insurance, which makes it viable financial support when needed. Let’s understand why it is a must and the best option for a safer future.
- Financial stability of your family: The main objective of investing in term insurance is the financial security of your family. Term life insurance ensures that your family do not have to compromise with their living standard in your absence and continue to live happily like before. It also makes sure that your loved ones have a steady source of income so that they don’t have to face any major financial hurdles. You can use an online term life insurance calculator to know how much cover amount you need to secure your family’s future. The calculators help in determining your required coverage amount and premium based on your income, age and other criteria.
- Financial liabilities: In the case of the untimely demise of the policyholder, there might be some financial liabilities like a car loan or home loan, left on the shoulders of the dependents. This can become a massive burden on them. Therefore, it becomes necessary for you to plan for such responsibilities and make suitable arrangements in advance. Term life insurance can be a boon in this case as it assures you substantial coverage amount that can be enough to handle your financial liabilities in your absence.
- Tax Benefits: Term life insurance does not only offer death benefit but also benefits you during your lifetime in terms of tax benefits. The premiums paid against the term life insurance are tax-free under Section 80 (C) of the Income Tax Act. You can claim benefits up to Rs 1,50,000 for the term life insurance premiums. Also, the pay-outs that are given as the death benefit amount to the beneficiaries after the demise of the policyholder are non-taxable, under the section of 10 (10D) of the Income Tax Act 1961.
- Affordable premium: Another best part of term life insurance is that the premiums you pay are really low as compared to other life insurance and you get a high life cover against those affordable premiums. Moreover, if you invest in a term plan at an early age, then nothing like it as then you pay a considerably lower premium amount.
- Simple to understand: Term life insurance is probably the simplest insurance to understand. It’s a pure life protection plan with no investment component. In a term plan, you pay a premium against a life cover amount that the insurer offers for a fixed duration. The coverage amount is paid to the beneficiaries as the death benefit amount, in case of the sudden demise of the policyholder.
- Riders in Term Policy: Term Insurance Policy allows you to add different riders to enhance the benefits of the primary policy. You can add the riders by paying a nominal additional amount over the premium. The various kinds of rider include critical illness riders, Waiver of Premium (WoP) rider, accidental benefit rider amongst others.
- Death Benefit pay-out options: Term life plans offer different pay-out options for the coverage amount. You can either choose lump-sum pay-outs, monthly or partial pay-outs. These pay-out options help the dependents to manage their regular expenses in the absence of a policyholder.
- Secured family: In case you are the sole bread earner in your family, a life term insurance is an assurance for your family’s security. It provides financial protection to your family and also takes care of your liabilities when you are not there.
- Beneficial for nuclear families: Nowadays, everyone has nuclear families, and you might be the only support system for them. Hence, if you don’t buy term life insurance, your debts could be a considerable burden on your loved ones. Herein, term insurance handles any such financial responsibilities in your absence.
Today’s lifestyle is filled with uncertainties and requires a well-thought financial plan. Therefore, to cope with such situations, you must invest in products like term insurance through which you can save money while ensuring that your loved ones are secured and can manage themselves during emergencies. You can look through various online insurance portals and compare multiple term life insurance online. After you get the best and cheapest term life insurance, you can make the purchase decision. One such web portal is BimaKaro.in which offers affordable term life insurances from various insurance providers.