When it comes to insurances, term insurance plan is a good way to secure your family’s financial future. Term life insurance policy is also considered one of the basic financial investment that every individual should make. After all, life is uncertain, and while we may not be able to be around for our loved ones forever, we can certainly secure them financially. In times of need, the term life insurance policy acts as a ray of hope for our loved ones in our absence. The sense of being financially secured encourages them to face a new day.
Today some of the best term insurance policies come with multiple features and benefits, right from affordable premiums to riders for additional covers. In this article, let’s take a look at some of the benefits that are entailed in this plan.
One of the benefits of term life insurance policy is that you can avail for a high-value life cover by paying an affordable premium amount. The duration for paying the premiums is divided on a monthly, half-yearly, and yearly basis. Additionally, if you the life cover is purchased earlier, then the payable premiums are lower.
Whole life cover:
As compared to many insurance plans which are available in the market today, term life insurance policy offers substantially longer coverage. Opting for a whole life insurance plans can cover you till the age of 99.
Payout of the sum insured:
Another benefit of term life insurance policy is, in case of the unfortunate demise of whoever insured, your family members will receive the sum assured as a payout. Your family members can choose to receive this payout in two ways:
- In the form of a lump sum
- As a monthly or annual income
The received payout can help to take care of household expenses and other financial needs of your family.
Critical illness coverage:
Term insurance plans also come with the additional benefit of critical illness coverage. It offers you a lump sum payout once you are diagnosed with any one of the 36 critical illness as specified by your plan.
With a term life insurance policy, you can avail for tax benefits too. The tax can be claimed on premiums paid under Section 80C. Additionally, tax can be exempted for the premium paid towards critical illness benefit under Section 80D of the IT Act. And, the lump sum amount received by nominees as the sum insured is also exempted from taxes under Section 10 (10D).
Today, the market has many term plan that is lucrative to many. If you want to buy a plan that will work the best for your then, try comparing various plans on term plan premium calculator available online. This will give a better picture of how effective the plan you are about to purchase will be for you.