Term life insurance is a popular form of life insurance policy offering a substantial amount as a death benefit to the policy nominee upon the untimely demise of the policyholder. Term insurance secures your family during uncertainties by providing them with the much-needed financial support in your absence. It is a pure protection plan without any maturity benefit, unlike other life insurance plans. One of the primary benefits of term insurance policy is its high sum assured amount at a low premium cost that no different life insurance policy offers. However, people often look at it as an investment toll which is a misconception. So, let us discuss its unique features in-depth for better understanding:
- Affordable: As mentioned above, one of the primary benefits of term insurance policy is that you do not need to worry about the premium amount. Term Insurance has the least expensive premiums; that is why it is considered affordable. If you are the sole breadwinner of the house, then this is the best insurance product for you as it will not impact your financials, and at the same time, it will also protect your family’s financial future. It is always advised to purchase Term Life Insurance Policy at an early age because age impacts the premium amount.
Following table shows the average premium amount on per day basis as per your age for different coverage amount:
Here you can see that the premium amount significantly increases with age. Someone at the age of 25 years gets a similar benefit in ₹14 per day wherein other people who are 65 years old have to spend ₹73 for a similar product with the same interests.
- Easy to Understand: Term Insurance is the simplest form of insurance. Even a layperson can understand the terms and conditions of the policy without any hustle, unlike other insurance policies where maturity benefit and additional return on investment factors are involved. Term Life Insurance is a simple investment plan which doesn't guarantee any maturity benefit; that's why the calculation of policy premium is simple, and it doesn't have any hidden clauses or conditions.
- Tax Benefit: Often, people don't invest in term life insurance policy thinking it does not offer any tax benefit as its premiums are low. But that's not right! Even though term life insurance policy doesn't have high premiums, but it still provides tax benefit up to ₹1.5 lacs under section 80 C of Income Tax Act, 1961. Coverage amount of Term Life Insurance is also totally tax-free under section 10 (D), so the beneficiary of the policy will receive full coverage amount without any deductions or charges.
- Fast Payment Process: In Term Life Insurance, there's a provision of quick payment of coverage amount in case of demise of the policyholder, which makes this policy even more attractive. This helps the family of the policyholder to get through tough times without financial burden.
- Modifiable: Term Life Insurance Policy is exceptionally flexible. You can easily modify it as per your need and requirements. Such as you can add various riders to your policy to make it more worthy. Some of the popular riders available in the market like Critical Illness Rider, Accidental Benefit Rider, Child Term Rider, Return of Premium Rider, and many more. These riders can transform your primary term policy into an attractive one with multiple benefits.
So, the culmination of the above pointers is that due to multiple benefits of term insurance policy, it should be on your top priority while planning your finances because it is never too late to do something useful for your family and loved ones. It can help your loved ones to pursue their dreams without thinking about the financials in your absence.
If you want to make the wise decision of buying a term insurance plan, then you can visit https://bimakaro.in Here you can select the best term life insurance policy as per your compulsion and need that too from the top insurance companies of India. You can also compare various insurance plans and then proceed further. Hence, visit BimaKaro.in today to safeguard your loved ones from the scepticism of the future.