Life is extremely unpredictable, and you do not know what the future holds. But you can ensure that even if you are not there, your family is financially protected through a term life insurance plan.
These plans are a basic, easy, and cost-effective way of gaining financial security. In fact, the availability of online term insurance plans has further made it easier for people to buy them. There are many reasons to buy a term life insurance plan and below are some of the prominent reasons –
1. Low Premium
Term plans allow you to get higher death cover or death benefits while paying nominal premiums. The premium of this plan is significantly lower in comparison to other insurance plans.
Your age is one of the biggest factors that determine the premium amount. If you buy a term plan at an early age, you are likely to pay fewer premiums.
2. Longer and More Coverage
Some term life insurance plans offer increasing life cover at certain intervals with a particular percentage increase. It allows you to increase the cover based on the rise in your income levels.
Moreover, term plans can be taken to gain coverage for a longer time period. Typically, insurance companies provide term plan coverage up to age 70, but some companies cover up to the age of 75 or even 80.
3. Tax Benefits
The premium you pay for the term life insurance comes with tax benefits. Under Section 80 C of the Income Tax Act 1961, you can acquire a tax benefit of up to Rs. 150,000 per annum. Additionally, under Section 10 of the same act, the benefit paid to the nominee is exempted from the tax
4. Steady Premium
Once you have taken the insurance policy against a particular premium, there will be no changes in the premium amount during the term of the policy. All you have to ensure is that you carefully choose the right premium based on your financial capabilities. Once you have finalized the plan, you can be rest assured that there will be no impact on that amount.
Another reason why the term insurance plans are considered the best long term savings plan is due to the extensive feature it offers. Riders are the additional benefits that you get with the actual death cover.
Term plans based on the insurer come with an array of rider options. Some of them include critical illness coverage, accidental coverage, the return of premium, cardiac cover, etc. By offering extensive coverage, the right term plan can ensure that you get maximum financial benefits.
6. Easy Accessibility
The process of buying a term insurance plan is extremely easy. With online portals, you can easily compare the plans offered by different insurance providers. Moreover, the documentation process is also quite straightforward. But ensure that you read through all the information carefully.
Term life insurance plans are provided by every insurer with different features and benefits. If you have not taken the term plan yet, above are some of the reasons that you should invest in it. These plans are unarguably simplest and an effective way of acquiring financial protection.