A term insurance plan is a contract between you and the insurer under which the latter is liable to help your family financially in the event of your eternal absence. These plans are also considered to be one of the most crucial types of life insurance policies that are a must-have for everyone.
With the help of a term insurance policy, you not only gain financial protection for the future of your family in case an unfortunate event takes place, but also helps you save money on taxes, which can prove to be beneficial in case your family suffers through a financial crisis.
There are endless benefits of term insurance for you and your family. In this article, we’ll concentrate on some of the major benefits of these plans and know how they can be useful in times of uncertainty:
Easy Learning Curve
When you purchase life insurance, you may find it hard to understand the various industry-specific terms related to the policies, especially if it’s your first-ever financial investment. However, a lot of people have admitted that term insurance policies are very easy to understand.
If you are wondering what’s inside an easy learning curve for you, then you should keep in mind that knowing about a particular policy comprehensively will allow you to make better and efficient financial decisions that help you grow your capital in the long run.
This accumulated capital will then prove to be useful in times of uncertainties when you might encounter the need for monetary help. That’s why a good term insurance policy like iSelect Star Term Plan by Canara HSBC Oriental Bank of Commerce is considered to be your companion during uncertainties.
Wide Range of Riders
The best thing about term plans is that they bring on several types of riders that can be used to enhance the coverage and benefits of your policy, as per your preference. These riders can be added to your policy in return for payment through a nominal premium rate.
There are some term insurance that provides your waiver of premium rider, critical illness benefit rider, and a lot of other types of riders that help you gain the most out of your policy when selected carefully.
Not to mention, these riders also help in extending the coverage of your policy, which means in case an unfortunate event takes place, your family is protected through financial help offered by the death benefit of your term insurance policy.
Immense Flexibility for Terms
If you are in-between a financial liability such as installments of a new car or personal loan that you might have borrowed, your unfortunate demise could leave your family alone with all these liabilities at a time when they have no one to protect them.
With the variety of payout options offered by aterm insurance policy, your family can be able to manage your existing liabilities and help them sustain a normal lifestyle without having to depend on anyone for financial help.
This makes sure that when an unfortunate event takes place, your family is covered against its major and minor risks through the multiple death benefits that offer a sufficient corpus of funds for the betterment of your family’s future.
Income Tax Benefits
Term insurance is also famous for its tax-saving benefits that allow you to save additional money on your policy. The premiums you pay towards the benefits of the policy and the payouts you receive through the plan are both exempted from taxes as per the current regulations.
As per section 80C of the Income Tax Act of India, the premiums that you pay for the term insurance plan benefits are available for the tax deduction of up to Rs. 1.5 Lakhs per annum. To attain the maximum benefits, you should choose the maximum coverage offered by the plan.
Additionally, as per the mandates of section 10(10D) of the Income Tax Act of India, the death benefit offered to your selected nominee is also exempted from the provision of taxation as well as a concession.
Affordable Premium Rates
The most attractive benefit of a term insurance policy that’s also the reason for its popularity is its incomparable affordability. This plan is available at a very nominal premium rate as compared to other life insurance policies available in the market.
Moreover, the earlier you purchase term insurance in your life, the lower will be the rate of premiums for you. Furthermore, the rate can even be reduced further by purchasing the plan online through insurance companies websites.
This cost-saving feature of term insurance policies can be very useful in case you’re a middle-class person and collectively the small amount will be accumulated into a large financial corpus that will help your family in times of uncertainties.
Summing It Up
When you explore the financial industry of India, you’ll observe that there is a wide range of investment options available at your disposal. Among such a large number of options, term plans are always preferred by the Indian audience.
There can be several reasons for the popularity of these plans in India. The most prominent one being its cost-effective nature. As we Indians always attempt to save money without compromising on the quality, term insurance is surely a fine choice for you.
So, if you haven’t already zeroed in a policy in your portfolio, make sure you begin with a good term policy like iSelect Star Term Plan and gain amazing returns on your investment along with a comprehensive safeguard for your family’s financial future.
Additionally, as stated above, these plans also offer you tax benefits that help you save money on taxes that can be used during the time of emergency.