We can never predict our future, but we can always prepare for the contingencies by securing our loved ones financially. In the event of an unfortunate demise, financial support can aid them in leading healthy lives and provide them with the capital to cover funeral and medical costs. Moreover, with financial aid post-death, our dependents can take care of all the liabilities and assets we leave behind. For the same, we choose the term insurance plan that keeps our lives insured and provides death benefits to our dependents after an uncertain casualty.
A term insurance plan is a prominent life insurance policy that covers you for a certain period or "term." If the policyholder faces an unfortunate demise during the term, the insurance pays the selected beneficiary a death benefit. By providing a high life cover at affordable premium rates, a term insurance plan assures financial safety in the future, giving you peace of mind in the present.
A term insurance plan encompasses numerous features, making it one of the popular life insurance policies:
Manage Assets and Liabilities
To increase our wealth and attain certain lifestyle requirements such as education, a house, or commercial expenses, we often take loans that we can pay periodically. But after our unforeseen demise, the responsibility of settling such expenses comes on to our loved ones, who might not be ready for it. To prevent that, we opt for a term insurance plan that saves our money in the form of premiums and supplies the beneficiaries with this money to manage these liabilities and protect important assets. Moreover, by having our lives insured for the future, we can make smart investments in the present without any stress.
Aids in Critical Illnesses and Disabilities
We all enjoy a carefree lifestyle and do not expect a disease or accident that can change our lives forever. However, to battle such critical illnesses and disabilities, we need a bulk disposable income to finance our hospitalisation, medical, and rehabilitation expenses. Therefore, we can take riders with term insurance plans to prepare for any extensive illness. In addition, many types of term insurance plans provide us with financial aid pre- and post-death. Moreover, whenever you take a term insurance plan from any agency, they have hospitals linked to their network that can provide us with the best care possible.
Reduces Lifestyle Risks with Income Options
In India, there are many families where a single individual earns and is the prime breadwinner of the house. Therefore, an unnatural demise of these individuals can massively impact the lifestyle of their dependents and loved ones. Thus, to avoid their family experiencing financial scarcity to carry a decent life, people choose a term insurance plan that can provide additional income to the family on top of the lump sum that is due to be retrieved. To guarantee that dependents' day-to-day living needs are fulfilled, a term insurance policy provides a monthly income stream as well as a lump sum payment.
No one wants their hard-earned money to be reduced to a minimal amount due to taxes, and a term insurance plan provides a wonderful way to save tax on your investment. The premium you pay for your term insurance plan might be tax deductible. The critical illness premium paid under the term insurance policy saves you tax under section 80D, and the term insurance premium comes under section 80C of the Income Tax. Subject to limitation, term insurance can keep your money safe whenever you need it in the future.
Add on benefits
In addition to the basic term insurance plan, you can buy add-ons/ riders to the policy to provide additional coverage or benefits. These riders may include accidental death coverage, long-term care coverage, and waiver of premium. Furthermore, you can also modify the premium payment methods to suit your investment strategy. Whether you want to pay monthly premiums or after a certain period, you can choose the favourable method per your budget.
With all the above benefits, a term insurance plan is a convenient and affordable investment option that numerous financial institutions offer. But to analyse which term insurance plan to choose, we need to predict the ROI that can provide us with the best possible financial security. For that, we use a term insurance calculator to get the most efficient and accurate results to assist us in our financial planning. A term insurance calculator is a digital tool available online that instantly evaluates the financial benefit of a term insurance plan. Through this tool, we can evade the tedious manual calculation and get advice on which term insurance plan to choose concerning our requirements.
Thus get your term insurance plan as soon as possible and enjoy a safe and stable financial future.