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Benefits of Life Insurance Term Plan

Term insurance policies protect the financial future of your family even if you are not present. Many people consider these plans to be the critical financial necessities of life in today’s time. Term plans online also have various benefits, ranging from low premiums to adding riders for additional coverage.

Why Should You Go with Term Insurance?

Term insurance plans provide financial security for the entire family in the event of the policyholder’s untimely death. You can also add coverage for critical illnesses or accidental death. You are covered for a long time, and the premiums are reasonable.

Benefits of Having A Life Insurance Term Plan

Individuals can benefit in several ways from a  life insurance term plan. Read on to find out what they are:

  • Simple to Understand: When purchasing a life insurance policy, you may find it challenging to understand the insurance-specific terms associated with various life insurance policies. One of the most appealing aspects of a life insurance term plan is its simplicity. A term insurance plan, as a pure life insurance policy, does not include an investment component. You pay the premiums, and in return, the insurer covers your life for a set period to provide term insurance benefits.
  • Affordability of Premiums: A term insurance plan can provide a high-value life cover for significantly lower premiums, like Rs 490 per month. Premiums can be paid either monthly, quarterly, or annually. The earlier you purchase a term insurance policy, the lesser amount of premium you will have to pay.
  • Whole Life Insurance: Term insurance policies provide significantly more coverage. Whole life insurance policies offer coverage until the age of 99.
  • Payout of Sum Insured – In the event of the insured’s untimely death, the insured person’s family will receive the sum assured as a payout. The holder of the policy has the option of receiving the sum assured as a lump sum, a monthly or annual income, or a combination of income and lump sum, or an increasing income at the beginning of the policy. This will assist in meeting financial needs, household expenses, and other costs too.
  • Critical Illness Coverage: If your term insurance plan includes Critical Illness Coverage, you will receive a lump-sum payout in case you are diagnosed with any critical illness included in the term plan.
  • Accidental Death Benefit: The Accidental Death Benefit can be added to your term insurance policy. It will protect your family against future mishaps.
  • Coverage for Terminal Illnesses – Term plans can provide lump-sum payouts in a terminal illness diagnosis, such as AIDS. You can receive tax benefits on premiums paid under Section 80C as well as premiums paid for critical illness coverage under Section 80D. The lump-sum amount received by nominees as the sum assured/death benefit is also tax-free under Section 10 (10D) of the Income Tax Act of 1961.
  • Additional Riders to Strengthen the Policy: Term insurance policies include riders who can be added to the primary term insurance benefits. By paying an additional small premium, you can add these riders to your term insurance policy.

Conclusion

Term insurance is a straightforward life insurance product that is critical for ensuring you and your family’s financial security. With a term plan, you get a high level of coverage at a low cost, ensuring that your family continues to live their current lifestyle in the future. As a result, it is critical to purchase a term plan and safeguard your family’s financial future.

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