Doubtful About Term Insurance? Read to Know it’s Amazing Benefits

In your 20s and 30s, the chances are that you probably don’t think much about financial security. But times have changed. Once you start your career, you become an equal contributor to the family income, as well as the responsibilities. This is why you need term insurance in your life.

If you are shouldering the expenses with your spouse or parents equally, imagine the emotional and financial loss you will leave behind should something happen to you. While no amount of money can ever fill the void you leave back; you can make arrangements to fill the financial void by investing in a pure term insurance plan at the right time.

Term insurance plans protect your family against uncertainties and also give you multiple features as well as benefits that provide financial security to your loved ones.

When it comes to a pure term insurance plan, the motive of the policy is to safeguard your family’s financial wellbeing and promise them recourse in your absence. This benefit will take care of their expenses and also help them stay afloat during turbulent times.

Given that the objective of term insurance plans is long-term financial security, it is pertinent to choose a term insurance plan that has an optimal sum assured, and the insurer has a high claim settlement ratio. Once you have checked off these two factors, you can rest assured that your family’s financial health in safe hands.

Here are some of the benefits of term plan that make a term insurance plan an indispensable part of your investment portfolio.

 

1. Financial Security for Your Loved Ones

Life is unpredictable, and not preparing for these eventualities can cost you heavily in terms of human loss as well as financial loss. One of the most significant factors that make term insurance plans the preferred instrument for investors is their ability to offer high coverage for low premiums. You can get a large sum assured at an affordable cost and give your family a complete sense of financial security, in case you are not around anymore.

 

2. Protection Against Emergency Medical Treatments

With an increase in lifestyle disorders, stressful lives, poor lifestyle habits, and lack of exercise, it is only prudent that you leverage the rider benefit that can be incorporated into your insurance policy.

You can supplement your pure term insurance plan with an additional rider benefit that can enhance the policy’s coverage to offer you an added layer of protection. When considering term insurance, make sure you look into critical illness rider that can be added to your policy for a nominal fee. You must also check the insurer’s claim settlement ratio to ensure that the company will honour their end of the bargain and will extend the policy benefit if you are diagnosed with one of the life-threatening illnesses covered in the policy document.

Once the illness is detected, your insurance provider will release the sum assured that will help you pay for the treatment costs and also other related expenses such as medical tests, medicines, and loss of pay due to non-productive days. This could be a massive help during such turbulent times. At the same time, it protects your family against the financial burden of bearing the cost of your illness.

 

3. Long Term Tax Saving Benefits

Investing in a pure term insurance plan has another benefit – tax saving as per different sections of Income Tax Act, 1961. You can avail of tax deductions of up to Rs. 1.5L on the premium paid towards the policy under section 80C of the Income Tax Act.

As per Section 10 (10D), the maturity benefit offered by some term insurance policies such as the return of premium, are also eligible for tax exemptions.

 

4. Peace of mind

You may think that nothing will happen to you; after all, you follow a healthy lifestyle and live a disciplined life. However, who is to say of eventualities such as road accidents, loss of employment, critical illness? These are just some of the many unpredictable aspects of life that make it necessary to invest in a pure term insurance plan. With the right kind of investment backing your family’s financial future, you will be able to live in peace, knowing that even if something untoward happens to you, your family will sail through the tide. Moreover, the insurance providers have started offering many incentives to young investors like you who can buy this lifetime protection for a nominal amount and give your family the security shield that will protect them against all uncertainties.

Now that you are sure about purchasing a pure term insurance plan, you should compare different plans online. Online term insurance plans from reputable insurers such as Max Life Insurance enable you to make an informed buying decision by reviewing, analyzing and selecting policies that provide maximum benefits at cost-effective premium amounts. Remember to check the insurer’s claim settlement ratio to verify their claim settlement history before investing.

The views expressed in this article are those of the authors and do not necessarily reflect the views or policies of The World Financial Review.