5 Fantastic Reason to Buy Term Life Insurance

Often people misunderstand term insurance plans as the regular saving plan with maturity benefit. When they get to know that there are no such benefits received on maturity, they tend to think that it is a wastage of money.

But this isn’t true because every year we see a lot of uncertain deaths because of road accidents and medical reasons. And if you are the sole breadwinner of your family, then you must cover yourself with Term Insurance so that in case of your sudden demise, your loved ones shouldn’t get the financial strain of daily expenses.

Term Life Insurance is a fantastic product where you can invest a little and covered with a substantial sum assured amount. This amount is then given to your family in case of your death during the term of the policy which helps them in sustaining their usual lifestyle without compromising.

Let us discuss the five fabulous reasons to buy term life insurance today:

Low Premiums and High Sum Assured – Term Insurance is the only life insurance policy that gives you excellent coverage in the smallest possible premiums in the industry. You can opt for Rs 1 crore coverage policy for which you’ll be liable to pay a very nominal amount of Rs 30-40 per day at max. And if you go for this policy at your young age, then this premium amount could be even lesser. So, it is always advised to buy term life insurance as early as possible. Term Life Insurance plan gives financial security to your family in your absence which works as a backup plan in case of your sudden demise. The insurance coverage amount helps your children to fulfill their dreams, your family to manage their regular expenses and repay any pending debts without putting any extra financial burden on them.

Tax Benefit – Gives tax benefit under section 80 C of the Income Tax Act, 1961. You can buy term life insurance and get a tax benefit as well, and thus it becomes a win-win deal. In case of your death during the policy term, your nominee will receive the sum assured amount, which is also tax-free under section 10 (D). Your nominee can easily deposit that sum assured to a bank or any other trusted bond and get good interest to handle monthly expenses. Though the significant purpose of Term Life Insurance is to cover your family financially in your absence; however, it also serves your goal of saving tax up to Rs 1.5 Lacs.

Long Term Goal Achievement – Term Insurance may not benefit you in the short-run because it doesn’t offer maturity benefit, but it will help your family achieve their long-term goals. For instance, your children might have some dreams which might not get fulfilled in your absence. Also, your family might face financial distress when you are not with them. So here term life insurance works as a shield to protect your family financially. The sum assured amount will be able to help your children pursue their dreams as well as your family to lead their life comfortably.

Flexible and Convertible – Term Life Insurance is the simplest form of life insurance policy, yet it is way more flexible. There are plenty of riders available like critical illness rider, accidental death rider, waiver of premium rider, family income benefit rider, child term rider, the return of premium rider, etc. which enhances the base insurance coverage while offering wholesome financial security. You can add multiple riders to your term plan and customize it as per your requirement. You can even convert your term insurance policy to permanent policy by choosing a term conversion rider. A rider will cost you a little extra on your base premium, but the benefits from it are way more than the additional cost.

Mind Tranquillity – Term Insurance provides various benefits like financial stability, tax benefit, illness coverage, but above all, it gives you peace of mind. You can’t predict uncertainties, but still, you can at least secure the financial future of your loved ones. We see today, everybody is stressed and depressed for so many reasons, but most people are worried due to economic insecurity. Being the only breadwinner in the family can give you mental strain because it is soul-crushing to think about your family in your absence. And in such a situation, the term life insurance plan gives you peace of mind. It would be great if you opt for a coverage amount, which is more than 10-15 times your annual salary because of the increasing inflation rate.

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