Reasons Why You Should Buy Term Life Insurance Plan - Indian Money Review
Purchasing a term
life insurance plan is the best way to ensure high cover for your
family at a low cost. A term
insurance policy gives the buyer an option to modify or customize
policy features and benefits to suit personal requirements. You have a number
of options to choose from.
It’s best to avail
term life insurance at young age. Once you have a good job and stable
income, you can avail
a term insurance policy as it provides your family with security and
financial stability in your absence. If you have dependents, don’t forget term
life insurance.
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Reasons Why You Should Buy Term Life Insurance Plan
Outlined below are the top 7 reasons why you must consider
buying a term insurance plan:
Affordable premiums: A term insurance plan is
affordable and conveniently fits your budget. These plans provide life cover
for a defined period and are designed to secure family needs in case of an
untimely demise. The policy holder can pay a monthly or yearly premium as per
affordability and budget.
Duration of the policy: the term insurance
plans are long term policies,
where an individual can opt for policy cover up to 40 years. The duration of
your financial commitment determines the tenure of the term insurance policy.
The term insurance policies are generally sold with terms ranging from 5 to 40
years. However, the term also depends on the age of entry of the policy holder.
The sooner you start, the longer you get to enjoy the cover.
Premiums are low: the term insurance plans can
be availed for a nominal monthly or yearly premium.
Offer rider benefits: a term
insurance rider is an additional benefit that provides the insured
with supplementary coverage along with the already existing benefits on the
term insurance policy. Some insurers provide rider benefits for critical
illness or the accidental
death benefit. The rider benefits can be purchased at an extra cost. A
buyer can modify their already existing policies by adding these riders that offer
coverage for all possible life risks.
Tax savings: a person availing term
life insurance policy can also get tax exemptions on the premiums
paid. The term insurance plan is an efficient tax saving instrument. Section
80C of the income tax act allows a tax exemption of up to Rs 1.5 Lakh a year.
Apart from tax savings on premium, the death benefit is tax free under Section
10(10d) of the income
tax act.
Provides financial stability to your family: Availing term
insurance policy makes sure you secure finances of your family on an
untimely demise. It helps your family stay on track in case of any eventuality
and helps settle debts and loans in the event of premature death of the
breadwinner. The term insurance plans are easy to comprehend and offer
substantial life
cover at low costs. The nominee is entitled to receive the death benefit in
case the policy holder expires within the term of the plan.
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