Term insurance policies are very much beneficial for you and your family. It makes your life safe and secured. If anything happens to you during the policy period the insurance companies provide accidental coverage, live coverage, and tax benefits. Term insurance policies are valid for a fixed or specified period of time and it varies from companies to companies. It helps to cover your medical expenses, paying off your debts and provide a secured future for your family and hold the responsibility of your families welfare. Term policies also come with flexible premium payments which suit your financial needs and wants. Know more about the benefits of term insurance policies.
Term plans offer financial security for your family. In the event of your meeting with an untimely demise, your family will get a fixed payout either in a lump sum or in monthly installments. This will reassure you that in your absence, your spouse and family will not be burdened by financial hardships of paying for financial liabilities like utility bills, children’s school fees etc.
In your absence, your family will not have to depend on debts to sustain themselves. They need not borrow from moneylenders or from relatives for sustaining themselves. They can depend on the amount that they will receive from the life insurance company.
If you have aging parents, you would need funds to look after their well-being, especially their medical expenses. If your spouse is working, the said income may not suffice to look after the family as well as your aging parents. Hence, a term plan would come in handy for you. With the payout that your family would receive from the term policy, your family can manage the medical expenses.
If your spouse has been a homemaker most her life and she has small children to look after, it would make sense for her to not pressurize herself to take up an occupation. She would need time to settle down after the bereavement. She would also need to stabilize things at home with now she becoming the head of the household. Also, since she may have been out of working mode for a long period, it might take a while for her to get a job. Also, with the Sum Assured she can start a small business of her own which will give her the independence to work according to her own timings and also look after the kids.
For you, buying a term plan means saving on your tax burden. The money that you pay as premium regularly is deducted from your taxable income under section 80C of the Income Tax Act,1961. Also, the payout that your family will receive is exempt under section 10D of the same Act. So, you get to save on your tax burden also.
Considering other life insurance policies like endowment plans and ULIPs, term plans provide much more cover at approximately half the premium. Although term plans do not provide any maturity benefit, it’s a good avenue to keep your family covered against the risk of your life at a cheaper rate.
All said and done, a term plan is a must for every person who has a family or is planning to start one soon.
1) The premium is fixed. It will not increase during your term insurance policy period.
2) The insurer can customize the term insurance policy by adding riders, accidental death etc.
3) In case of death, the dependents can receive the amount as mentioned in the agreement.
4) The important benefit is that you get a return on premium as well.
5) Term insurance policies are less expensive than a life insurance policy.
Protection plans are important because they act as your financial independence after your retirement. In an event of critical illness or accidental death, financial insecurity would plague you and your family members. Term insurance plans can be availed before death and that makes them even more important as they ease your financial crunch in critical illness. Term insurance policies also save you from emotional losses. In an event that anything unfortunate occurs with you, the first thing to affect you about the situation is emotional. Term insurance policies save you emotional losses which in turn save you from feeling horrified about the situation that takes care of half the situation in itself.
Policy Planner Insurance
Web Aggregator Pvt Ltd.