Term insurance offers these 6 benefits: How many do you know?

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Term insurance offers these 6 benefits: How many do you know? (Image Courtesy: Shutterstock)
Term insurance offers these 6 benefits: How many do you know? (Image Courtesy: Shutterstock)

New Delhi : Life tends to throw curveballs at us. One day, you walk out of your home, and some mishaps happen. Have you ever given any thought to it? If something unfortunate happens, what will be the effect of that on your family and will your loved ones’ cope with the incident? What will they do without you?

These are some instances in life, which are unavoidable. While you can’t avoid fate, you must be prepared for it when the time comes. A term policy helps you stay prepared against it. 

A term policy is the best way to provide financial security to your family in your absence. Here are some of the most prominent benefits of term insurance plans: 

1. Whole Life Cover

Term policy is a part of a life insurance plan that covers a person against uncertain events of life. It is essential, especially for people who are the sole bread earner of the family. The policy offers a sum assured,which is given to the policyholder’s family or beneficiary, thereby reducing their financial burden significantly. 

If you are the policyholder, the policy benefits provided to your family upon your unfortunate demise can be used to maintain their lifestyle. The amount can also be used to payback loans or as a monthly income to manage daily expenses.

You can also get your comprehensive coverage under the whole life cover till the age of 85 from various insurers.

2. Affordable Premiums

Term policy is the primary form of life insurance; therefore, it has one of the lowest premiums. It is the type of plan that everybody can afford and has an easy process to buy online. Insurance plans provide you with the choice of premium payment between monthly, half-yearly, or annually as per your convenience. 

3. Tax Benefits

All life insurance plans, including the term policy that you have purchased for your family provide tax saving benefits under section 80C of the IT Act 1961. You can claim tax deductions up to Rs 1.5 Lakhs if you have invested in any of the insurance plans. However, it must not be the only motivation to buy a term policy.

4. Rider Options

A term policy comes with rider options to enhance the basic cover and provide maximum protection to the policyholder. Some of the rider options are comprehensive accidental benefit and waiver of premium. These are some powerful add-ons that you must consider while buying the best term insurance policy as they can be of significant help in the future. 

5. Critical Illness Cover

Adding a critical illness cover to your term policy can save you from major future hassles in case you get diagnosed with one. Since the treatment costs of life-threatening diseases are rising, having a critical illness cover provides relief during such times. Some of the illnesses covered under the plan are cancer, strokes, kidney failure, and heart attack.

Some insurance companies provide critical illness benefits within the basic cover of a term policy, whereas, the others offer it under the rider options. You can pick the one best suiting your needs.

6. Benefits to Nuclear Family

Gone are those days when joint families were a usual thing. Now there are more nuclear families as the times have advanced, and people have become independent while moving out for work opportunities. There were families to support each other before, but today, nuclear family culture has left us with limited options. 

When one of the earning members meets an unfortunate event, the financial burden grows on the other, which becomes a matter of worry. A term policy help reduce the financial burden of the nuclear family and look after any liabilities. 

(Image: Shutterstock)

A term policy offers peace of mind as you know that your family’s financial needs will be fulfilled in your absence.Since it acts as a safety net against unfortunate events of life, it is advisable to buy the policy in young years to gain maximum out of it.There are many IRDA approved companies that offer comprehensive policy coverage.

Term life insurance plans from reputable insurers such as Max Life Insurance provide the flexibility to customize your protection based on your needs. These plans offer comprehensive coverage against various ailments in the form of a sum assured.You can also choose the option ofa payout while buying the best term insurance plan according to your financial goals.

With a term policy, you can stay protected for the most unfortunate events of life.