The pandemic has awakened consciousness among the masses. As a result, reports suggest there has been a massive rush to purchase term insurance plans in India. With the increasing uncertainty, it appears appealing to obtain a life insurance policy to secure the financial well-being of one’s family. Companies are also developing new customized products to meet the increasing demand for applicants.
Term insurance benefits include providing financial stability to the policyholder’s family in the event of his death. In addition, there is optional coverage for critical illness or accidental death at very low premiums. Term life insurance provides financial and mental security for an extended period of time, which is essential in these trying times. In case you have any doubts about the term plan benefits, read on.
What are Term Insurance Plan Benefits?
Some of the benefits of a term insurance plan are stated below:
The primary reason for purchasing term insurance in India is financial assistance in the event of the policyholder’s death. When the insured is the only earning member of the family, a loss of income can have a significant impact on the lives of the dependent family members. In such cases, term insurance provides a predetermined sum assured to nominees, providing much needed financial stability to the rest of the family.
Financially Securing Dependent Family Members Future
In the event of the policyholder’s untimely death, the policy’s sum assured can relieve dependent family members of financial stress. The funds provided to the nominees can be used for their children’s education, marriage, to pay debts, or other basic family needs. The best term insurance plans in India also comes with an enhanced life coverage option.
Gives You a Significant Life Cover for Affordable Premiums
Term insurance is the most fundamental and straightforward type of insurance product. In the absence of maturity benefits, the plan will provide the highest possible life coverage at the lowest possible premium. Furthermore, applicants who purchase policies online avoid paying commissions to agents, making it more cost-effective.
There are Important Riders
Some plans include the rider option. These additional benefits come in a variety of types. Each rider has its own set of conditions and costs, which vary depending on the term policy, premium, and insurer.
While some riders are included in the base plan, others must be purchased separately by the policyholder by paying an additional premium. As a result, it is critical to check with the company about the riders and the premium to take advantage of the features.
Some of the riders are:
- Accidental death benefits rider
- Accelerated death benefit rider
- Accidental disability benefit rider
- Critical illness benefit rider
- Waiver of premium rider
- Income benefit rider
Income Tax Benefit
Aside from the benefits mentioned above, term insurance also serves as an important tax-saving tool for policyholders. An insured is entitled to a term insurance tax benefit of up to Rs. 150,000 per year on premium paid under Section 80C of the Income Tax Act, 1961.
Due to its inherent advantages, term life insurance has appealed to the masses in this unpredictable world. You not only secure your family’s financial future, but you also receive tax benefits. Furthermore, the high life cover at an affordable premium appears to be a very small price to pay for the benefits offered by term insurance plans.