Keeping your family safe and financially stable can be one of your most hectic and consuming tasks. However, it does not have to be that way if you are covered by a reliable term plan. It can provide a sense of certainty for your family’s future and is affordable and practical to include in your portfolio. If you are wondering how term insurance can help you protect your loved ones, keep reading to know more about its benefits.

What is term insurance?

term insurance, or term plan, is a pure life insurance product that provides life insurance to the policyholder(s) for the sum assured. It is the most complex of all life insurance policies and also the easiest to understand. The policy has a fixed term or duration for which it is valid. If the policyholder dies untimely during this period, the nominees are entitled to a payout that can help them navigate tough financial times.

Term plans can be bought both online and offline, both the modes offer different benefits to the customer.

How does term insurance benefit you?

With a term insurance policy, you can protect your family by getting a financial settlement in case of death. This is especially useful if you have a large family to take care of, some future expenses you want to meet in your absence, or some current liabilities that you don’t want to burden your family with.

Also, term insurance is important as it can help you in case of serious illness or accident.

Benefits of term insurance in India

• Economical: Term plans are the most affordable life insurance product in the market today. The best part is that the premium at which you buy the policy is locked in for the entire policy term, which can be beneficial if you buy the policy early in life. You can lock in a super-low premium and get a surprisingly high sum insured for it.
• easy to get: It is very easy to get (understand and buy) a term plan. Since they are basic products without any bells and whistles, it is easy to understand what purpose they serve and the way they work. You pay annual premiums for a fixed number of years and enjoy life insurance for the sum assured. If you die untimely, your nominee gets the payment. It is also easy to buy them both offline and online. Although it is cheaper to take a term plan online, taking one offline can also benefit you in many ways.
• Higher Death Benefit: Generally, the sum insured offered by term plans is high, and combined with low premiums, makes it a great value for money option.
• Spouse Option: You can add a secondary policyholder to the plan, and they can get 50% of the sum assured.
• tax benefits: Term plan premiums (up to ₹1.5 lakh) are exempted from taxation under section 80C, and death benefits are exempt from taxation under section 10D of the Income Tax Act 1961.
• Additional Riders: Most of the companies offer attractive riders, which are essentially add-ons to your policy that can significantly increase the scope of your term plan. These include a return of premium rider, a critical illness rider and an accidental death benefit rider. Note that adding these riders does increase the premium but is generally worth it.

How to choose the right term plan for you?

Before taking a term insurance policy, you should research and decide on the coverage amount you want. Then, find a term insurance plan with a good claim settlement ratio. Also, look for a term insurance plan with low premium payment and high coverage amount. Lastly, you will need the right term of the policy so that you remain insured for the entire term that you are earning.

You can also add certain riders to the plan and even add a secondary policyholder, such as a spouse or child, to the plan. Make sure to use the free look period after purchasing a policy and go through the fine print to ensure that this policy is the right fit for you.

conclusion

As you can see, term insurance is an important financial product that can protect your family from major financial issues and help you secure their future in your absence. All you need to do is choose the right term plan for you and enjoy the benefits of term insurance! Now that you know what term insurance is and how it benefits you, it is time to start researching various term plans in India.

To start the comparison, you can use a . You can use term insurance premium calculator online. These are free tools that can estimate the premium you will pay by taking into account your basic details. Start Searching Today!

Disclaimer: Content created by Outstanding Global Efforts