Why Term Life Plans are a must?
Everything is mortal, which means our life is full of uncertainties. It is necessary to be aware and well protected for situations that can be handled or avoided. Life is precious to all but it is precarious too. Unfortunate situations like death caused by accidents and other various reasons can occur at any time. In such cases, it is extremely important to have your life insured. Life insurance policies provide financial protection to the policy holder’s family in case anything unforeseen happens and the insured loses his/her life. There are various types of life insurance policies that are suitable to customers with varied requirements. However, if you are looking out for a life insurance plan that requires low premiums and provides high coverage, you might as well buy a term life insurance plan.
Term Life Plans are the simplest type of life insurance policy, it is a pure life insurance plan with no survival or maturity benefits. Term insurance plans are life insurance policies that offer greater coverage with lesser premiums. These plans do not have any cash value. Term plans provide you with financial security for a fixed period of time, typically between 5 to 40 years. Within this time period, if you as a policy holder die due to any kind of unforeseen circumstance, your family will be paid a death benefit. To increase your coverage, you can also buy additional riders that will be very beneficial to you.
Top #6 Reasons to buy a term plan-
The sum-assured is paid off to the nominee or beneficiary of the insured when he or she passes away. This death benefit offers a large sum of money that provides your family/nominee with the financial support and stability they need.
Under section 80C and 10(10D), term plans are eligible for certain tax exemptions and deductions. You can claim tax deductions for the premiums you pay, as well as the death benefit paid to the nominee or beneficiary contains certain tax benefits. Thus, term plans not only are a great life cover but also are an advantageous tax saving tool.
Higher Monetary Coverage
Term plans offer a vast financial coverage with minimal or nominal rate of premiums. This is definitely the most wanted by all life insurance policy holders.
To obtain a life cover, you will be spending just about one percent of your yearly income. There is no aspect of investments too, this makes the premiums cost so low. Term plans have premiums that are affordable and cheap. For instance, for buying a term insurance of Rs. 1 crore, you will have to pay only Rs. 7000 annually.
Pliability is one of the most significant feature of term plans. You as a policy holder have the ability to alter and customize the plans as per your requirement. You can also choose plans offline as well as online, health plans aren't a mandate.
Additional benefits can be received by purchasing a rider. They provide extra coverage and come for a nominal cost. Depending upon your requirement and need, you should decide and buy the specific rider. Some riders that you can purchase at the time of buying the term plan are critical illness rider, permanent or partial disability, death due to accidents, etc.
In conclusion, term plans are definitely recommendable. There term insurance life plans are used widely by people since it is so cost-effective and has an incredible set of benefits. It is wise to purchase a term plan as early as possible, to obtain long term benefits.