Term Life Insurance: A policy to secure your financial future
Eventualities occur in life without prior notice, and when they do, they bring a financial burden that can empty all your savings. Insurance policies have always been a fundamental necessity for people looking to mitigate the financial burden and ensure a secure financial future for their families. Among numerous insurance policies and insurance products, term insurance is a product preferred by most people to ensure financial security for family without paying a substantial amount as a premium.
Term life insurance is a simple insurance product that offers a lump sum amount in the event of the policyholder’s death. Apart from being accessible to almost everyone, term insurance policies are known for their benefits such as flexibility, affordability, financial stability etc.
Term Life Insurance: Why is it essential?
Term insurance policies are pure protection plans which work effectively by replacing your income and providing a secure future for your family after your demise. They offer the highest life cover for the lowest premium amount which you have to pay at regular intervals. However, to utilize the benefits to their full potential, it is always wise to know what they can offer before buying a term insurance policy.
Financial Stability:People buy term Insurance policies for their ability to offer financial stability in case of emergencies. Term Insurance is a form of life insurance which provides financial assistance to the beneficiary after the death of the policyholder. The amount paid by the insurer can help to manage the family’s future financial burden.
Low Premium:One of the most important reasons term insurance is always in high demand lies in their premium amount. As term life insurance policies have no investment element in their operational process, their insurance premium is the lowest among all insurance products. For example, with a premium of fewer than 650 Rs per month, you can buy a term insurance policy of 1 crore. The premium for term insurance policies can also be reduced by buying it early in life. The early you start, the lesser the premium will be.
Tax Savings:Term Insurance policies are known for being tax efficient. During the policy term, policyholders can get tax deductions on premium payments up to Rs 1.5 lakh under section 80C. After the claim process, term life insurance policies provide the agreed lump sum amount to the beneficiaries without any deductions.
Additional Benefits:Term Insurance policies are highly flexible as they offer the facility to add different riders to make it more suitable according to one’s lifestyle. Policyholders can add term Insurance riders such as accidental death benefit riders, critical illness riders etc., to the term insurance policy and get additional benefits over and above the policy features.
Maturity Benefits:Although traditional term life insurance plans only offer a death benefit as a one-time payment, more sophisticated and advanced term insurance policies incorporate an option to realize maturity benefit. Specific plans use ‘Return of Premium Option’ to offer maturity benefits under traditional term insurance plans.
Term Insurance Plans vs other Insurance Plans: Why should Term Insurance be your next purchase?
Factors that can make a term insurance plan your ideal next purchase:
Simplicity:Term Insurance policies are easy to understand. As they have no investment component attached to them, the policy terms are straightforward and don’t include any hidden terms or conditions.
Flexibility:Term Insurance policies offer immense flexibility to the policyholders. They are easy to opt-out of and can be fully customized or changed according to the policyholder’s needs.
Sum Assured:Term Insurance policies offer the highest sum assured at a relatively low premium. Customers can buy term insurance plans with a sum assured of up to 1 crore by paying a premium of only 1000/-*.
No Hidden Costs:Term Insurance policies are designed and structured to offer utmost transparency to the customers. They come with clear policy terms with no hidden costs or conditions.
Although term life insurance policies are comparatively easy to understand and buy, it is always beneficial to be well informed about their benefits. Choosing a quality insurance broker with proven past experience can prove beneficial in purchasing an ideal term insurance plan. PINC Insurance offers best-in-class term insurance plans that cater to every insurance need a person can have. You can visit PINC Insurance to buy the ideal term insurance policies.