Considering the risks associated with life, the significance of having a term insurance plan is undeniable in the present scenario. If you are wondering why term insurance should be a part of your financial planning, read the blog till the end to find out the same.
Key Reasons Why Term Insurance Is Important
Having a suitable term insurance plan is critical for many reasons. These include the following:
●Financial Protection For Your Dependents
Amidst the country's ongoing inflation rate, managing finances has indeed become a big deal. Thus, you must consider what would happen to your dependents in case something happens to you. Here is when term insurance comes into play, securing your family's financial stability in the form of the death benefit in case you pass away prematurely. You can estimate your required coverage amount and premiums beforehand using a term insurance calculator online for free.
●Ideal for Long-term Goals
Term insurance policies are long-term contracts that you have to maintain for a long time. In case of untimely demise, the sum assured can be used by your family to achieve their long-term goals, such as sponsoring higher education for children, their marriage, their post-retirement life, etc.
●Tax Benefits
Whenever you apply for a term insurance policy, you become eligible to save a substantial amount from your total taxable income under Section 80C of the Income Tax Act. Thus, there can be a tax deduction of up to Rs. 1.5 Lakhs from the premium you pay, which makes your investment worth it.
●Sense of Contentment
You must consider securing yourself financially, considering the uncertainties of life. Term insurance works as your financial backup plan for your dependents. Especially if you are the sole breadwinner, it is wise to have a term plan in place. Doing this provides you with peace of mind, knowing your loved ones are financially secure.
What Are The Benefits Of Having A Term Insurance Plan?
Applying for the best term insurance policies empowers you with several advantages to help you deal with the difficult times of your life. Go through the following points to discover its benefits:
●Larger Protective Shield
Term insurance policies are a more affordable option among other life insurance products. Thus, they allow you to have higher life cover than usual, that too at affordable monthly premiums.
●Better Financial Coverage
You can also increase their term insurance coverage or the sum assured as per the changing critical phases of your life. Under certain reputed term insurance providers, you are allowed to increase your life cover by 50% when you get married or by 25% once you become a parent.
●Enhanced Advantages
You are allowed to enhance your existing term insurance policy by including additional benefits or riders. For instance, you can upgrade your usual term insurance plan by adding critical illness, accidental death, or even disability income coverage.
You can also add a premium waiver benefit. Under the premium waiver benefit of term insurance, you can waive future premiums in case you become permanently disabled.
●Multiple Payout Options
Multiple payout options exist for receiving your benefits monthly, quarterly, or annually. Also, the death benefit can be paid in a lump sum or a staggered manner that is equal to the sum assured.
Final Words
To sum it up, considering how life is filled with ups and downs, securing yourself financially is one of the major factors. It becomes even more essential when you are the sole breadwinner of your family. So, to ensure that your absence does not land your family into an immense financial burden, evaluate your financial requirements with the help of a term insurance calculator and apply for a suitable term insurance plan today. With your term insurance plan, you can enjoy several tax benefits.
(This article is part of IndiaDotCom Pvt Lt’s sponsored feature, a paid publication programme. IDPL claims no editorial involvement and assumes no responsibility or liability for any errors or omissions in the content of the article.)
