Of the most comfortable and most effective measures to financially secure a family in the event of an untoward death of an earning member of a household is term life insurance. It is essential for all earning members as it helps their dependents to maintain a better lifestyle in the absence of the policyholder. If you are still thinking about it, then know why it is crucial.
A term plan that will compensate your income at the time of your death is a pure risk cover plan that helps the policyholder by providing insurance money to the beneficiaries when they die. Term plans have no maturity value. However, it plays a vital role in untimely deaths. You can pay for your child education with the insurance money; your loan can get repaid. It can serve as an alternative source of income for your wife. Remember, there is no trust in life, and you would not like your family to go through financial troubles in case of sudden death.
Benefits of the term life insurance
Cheap, yet gives plenty of protection.
The sooner you buy a term plan, the cheaper the premium. The term life insurance duration is between 5 and 30 years. If you purchase it at the age of 20, then you will have to pay less than the premium charged at the age of 30 years. In this way, it becomes the cheapest insurance plan with maximum benefits. You have to pay a higher premium when you choose an insurance plan that offers additional returns and has a lower life cover than a term plan. In this way, it’s proved that a term plan gives more protection at a lower premium.
Protects your family from all liabilities
A term plan will not only take care of your family’s day-to-day expenses after your death but also other essential things like repayment of debt. It pays a fixed insurance amount at a specified premium for a specified time. After the end of policyholder, insurance money is passed to the family, so that with the help of money, they can settle all debts and liabilities. With this money, your home loan, and your child’s higher education and marriage can all be taken care of. The term life insurance can also preserve the lifestyle of the policyholder family even after his death.
The tax benefit is also available on the premium paid for term life insurance under Section 80C of the Income Tax Act. The maturity claim is also tax-free. Due to the low premium of term insurance, you can invest the remaining money in other tax saving instruments that give good returns.
Flexibility and convenience
Since one can purchase term plans through online platforms, it is easy and convenient to choose a suitable policy. By buying a policy online, you also avoid becoming a victim of miss-selling, and by comparing the policies of different life insurance companies, it helps to choose the right plan carefully.