Many people mistake term insurance as a regular savings plan with maturity benefits. They tend to believe that term insurance is a waste of money when they learn that they will not receive any benefits at maturity.
This is not true, as we see many deaths that are uncertain every year due to road accidents or medical conditions. If you are the only breadwinner in your family, you should consider Term Insurance to protect your family from the financial burden of everyday expenses.
Term Life Insurance allows you to invest a small amount and be covered by a large sum of money. The amount will be given to your loved ones in the event of your death within the policy term. This allows them to maintain their lifestyle as usual without having any compromises.
Here are five reasons why you should buy term life insurance now:
Low premiums and high sum assured –Term insurance is the only policy in the market that offers excellent coverage at the lowest possible premiums. For a Rs 1 crore policy, you will only have to pay Rs 30-40 per person/day. If you buy this policy when you are young, the premiums could even be lower. It is best to purchase term life insurance early. The Term Life Insurance Plan provides financial security for your family while you are away. It also acts as a backup in the event of your sudden death. Your children can fulfill their dreams and your family can manage their expenses.
Tax benefit – Provides tax benefits under section 80C of the Income Tax Act 1961. It is possible to buy term insurance and receive a tax advantage. This makes it a win-win situation. If you die during the term of the policy, your nominee receives the sum assured, which is tax-free according to section 10(D). The nominee can deposit the sum assured in a bank, or other reliable bonds and earn good interest for monthly expenses. Term life insurance is primarily designed to protect your family in the event of your absence. However, you can also save up to Rs. 1.5 Lacs on your taxes.
Long-Term Goal Achievement – Although term insurance may not be beneficial to you immediately, as it does not offer maturity benefits, it will help achieve your family’s long-term goals. Your children may have dreams that they might not be able to fulfill in your absence. Your family may also face financial hardship when you aren’t around. Here, term life insurance acts as a financial shield for your family. The sum assured will allow your family and children to live comfortably.
Flexible, Convertible and Flexible –Term Life is the most flexible form of life insurance. Riders are available for a variety of situations, including critical illness, accidental death, waiver of premium, family income benefit, child term, return of premium, etc. This enhances your insurance coverage and offers you a sense of financial security. Add multiple riders to your plan and customize as per your needs. By choosing a rider for term conversion, you can convert your policy from term to permanent. The rider costs a bit more on top of your base premium but you will get much more benefits.
Mind tranquillity –Term insurance provides many benefits, including financial stability, tax benefits, illness coverage and peace of mind. Although you cannot predict the future, you can still secure your loved ones’ financial security. Most people today are stressed out and depressed due to the economic uncertainty. It can be stressful to be the sole breadwinner of the family. You have to worry about your family while you are away. In such a case, term life insurance gives you peace-of-mind. Due to the rising inflation rate, it would be ideal if you chose a coverage that is greater than 10-15 times your salary.
