Buy Term Insurance – In today’s fast-paced world, the uncertainty of life is higher than ever before, making financial security a top priority for everyone. It is essential to plan for your family’s financial well-being well in advance, and the right way to do so is by purchasing a suitable term plan, for example, a 5 crore term insurance plan.
Term insurance as a financial tool has multiple benefits for the policyholder and family members, ensuring the availability of the right financial safety blanket when needed. Many different term insurance policies are available, like whole life insurance plans, ULIP, and NRI life insurance, and you can find the one that matches your budget and requirements with the help of a term insurance calculator.
Term Insurance Explained
Term insurance is a product category under life insurance to provide your family with financial support during the unfortunate incident of your death. The features offered by a term insurance policy include death claims, critical illness coverage, different loan covers, etc. You can also customize term insurance plans per your requirements and budget constraints.
As an investment option, it acts as a financial cushion to any unforeseen circumstances that can arise in the future. Here are some of the top benefits of term insurance in 2024.
Top Benefits of Term Insurance in 2024
- Complete Protection
The base benefit of a term insurance plan is the death benefit that allows your family to handle the financial burden and other expenses post your demise.
However, in addition to that, the term insurance plan offers a range of add-on benefits that can be chosen as per your requirement to get better protection against unforeseen situations. The add-ons can include accidental death cover, illness benefits, loan payments cover, etc.
- Better Cover
As a standalone product, term insurance is highly cost-effective if we compare the lump sum claim amount offered for an economical premium amount. You get a financial cover that can support your family after your death, making it a good decision to invest in 2024.
- Life Cover Up to 99 Years
One of the most significant advantages of investing in a term insurance plan is getting a cover for a lifetime. Most insurance providers offer a coverage limit of up to 99 years, making it a lifetime benefit for your family, especially in your absence.
- Tax Benefits
Along with providing financial security for your family, you also enjoy multiple tax benefits with term insurance. Depending on the term insurance plan and the add-ons, you can benefit from an approximate deduction claim of ₹1.5 lakhs, including the premium under Section 80C.
Another tax exemption is under Section 80D, wherein the combination of a health-related add-on benefit to term insurance can help with a tax deduction of up to ₹25,000 on the premium paid.
- Better Savings
You can purchase term insurance at any age as the pricing for these plans is economical and mostly affordable for even the younger generation.
Additionally, given the premium amount is based on the add-on benefits you choose, the comparison between the premium amount and the cover offered, this investment looks like a win-win deal.
Key Points to Remember When Buying Term Insurance
- Before purchasing a term insurance policy, assess your requirements and then opt for a cover and premium amount that best suits your needs.
- Even with the availability of life cover for up to 99 years with term insurance, you can still decide your tenure as per need. So, analyze your required tenure and then pick a term insurance plan.
- The claim settlement ratio is an essential criterion to consider while making a decision. The end is to pick a term insurance plan from an insurance provider with a high ratio.
- Customize your term insurance plan based on the different add-on benefits available. Always research the additional benefits you require to check their availability before finalizing a term insurance plan.
Conclusion
Regardless of the year, the importance of a term insurance policy is extremely high. It is an investment for a better tomorrow, so understanding why it is important for your family and how to pick the best one is crucial.
Many insurers are providing term insurance plans, and the right way to proceed is to understand the terms and conditions for each, compare the premiums, and purchase. Since we are in 2024, you can also buy term insurance policies online, so buy one today!
