We don’t know what will happen in future. And We need money to survive. God forbid something happens to you. Your loss will be difficult to fill in but will your family have sufficent money to carry on. To make sure that your family is financially secure even after you are gone, opt for term insurance. According to you, what is of utmost priority while selecting term insurance plans? Well, obviously the coverage that the plan has to offer. Term insurance is one such plan that understands your needs, your family needs for financial resources and provides the same in your absence. With life covered with the term plan, an investor does not have to worry financially about his inability to provide for his family.
Apart from its provision of life coverage, investors opt for term insurance plans for many other reasons. When you make an investment in online term plans, it guarantees maximum benefits for a longer duration of time. Needless to say, term insurance benefits enable the investors to not only look after him but also his beloved ones. Therefore, if you’re looking for reasons to make an investment in term insurance, then keep reading
Reasons why you should Buy Term Insurance plan
- It is an affordable option
Being the purest form of life insurance plan, term insurance is the most affordable option as compared to the rest. It not only fits well in your budget but also offers a return on the payment of the premium on certain term plans. On the investment in a term plan, the policyholder requires to make a premium payment on a monthly/yearly basis based on affordability.
- It provides a huge sum assured
As you age, the need for a steady flow of income increases. A term insurance plan ensures just that and provides you with a larger value of sum assured. A huge sum assured value proves fruitful in times of critical illness or in the worse case scenarios like death. With the accurate amount of sum assured, an investor is able to manage all these unfortunate events fairly well for a longer duration of time.
- It covers you for a longer duration
Typically, every insurance policy has an age threshold and a specific term of the policy. Since term insurance is also one of the many, it might offer a term for a period of 40 years. However, it is advisable to avail an online term plan at an early age. Investing in it while you’re young ensures that you benefit from the long term cover without any age or term barrier.
- It offers different types of riders
Apart from the coverage, a term insurance plan enhances the value of your policy by providing additional benefits of riders. When you avail a term plan, it offers you with an additional financial cover over the regular sum assured. This additional sum is called a rider in your insurance policy. A term plan offers different types of riders like the waiver of premium, critical illness, accidental death, and so forth. Depending upon the need and emergency of the situation, an investor can incorporate these riders into the plan.
- It allows tax saving benefits
The main reason for an investment in a term policy is its dual tax saving benefits. Fortunately, under section 80C and section 10(10D) of the Income-tax Act, 1961, the premium paid by the investor is exempted from the payment of taxes. These benefits levied by a term plan allows the investors to not only preserve their financial resources but also to plan for their taxes in the future.
- It charges low brokerage
Purchasing an insurance plan means extra charges of brokerage. However, this is not the case with a term insurance policy. Under a term plan, the brokerage element is the least which might vary between 5-6%. If you want zero charges of brokerage, then invest in an online term policy.
Video on Why do you need Life Insurance
This 2 minute video talks about why you need Life Insurance
This image gives an overview of why you need to buy term insurance and Health insurance
Overview of buying Term and Health Insurance
With these top 6 reasons why an investment in term insurance is necessary, do you think you need to wait for any further? If you’re still sceptical about the investment, then seek help from professional guidance as it’ll give you the surety about it.
