Arguably, there is nothing more important than family in our lives. With time, you start a career, find a partner and start a family. As you become a parent, you also start focussing on financial planning to secure your family – of which life term insurance plays a significant role. A term plan can be your family’s guardian angelat every step of life.
A life insurance term plan is a form of life cover that takes care of your liabilities and responsibilities, even in times when you are not around. A term plan acts as anessential safety net for your dependents in case of your sudden demise and provides death benefits to your family. There are various types of term plan, such as family floater or individual term plan, which you can choose from considering your needs.
If you are looking for information on ‘what is term insurance’ and its benefits, let us look at the various ways in which a term plan can secure your family:
- Long Term Financial Security
The primary purpose of having a life insurance term plan is to help alleviate your worries about your loved ones’ future, if say, something happens to you. In your absence, your life insurance term plan will help your family manage their lifestyles without compromising on their dreams.
In short, the term plan will provide the much-needed financial stability to your family in your absence. Therefore, you can be sure that your term plan coverage will help take care of your family’s needs in the long term.
- Tax Benefits
Apart from providing financial security to your loved ones, a term planhas many other benefits, such as tax-saving benefits on the premiums paid. The term plan premium of up to Rs.1.5 lakh is tax-deductible under Section 80C of the Income Tax Act. Furthermore, the death insurance benefit available to your family, after your untimely demise within the policy tenure, is tax-exempt under Section 10 (10D) of the Act.
- Affordable and Extensive Coverage
In your working years, you may feel that your finances are secure and consistent with the regular income flow.However, you need to have the coverage of a term planto make sure that your family does not have to tackle any form of financial instability in their lives. At the same time, you, too, need to have peace of mind knowing that your family’s prosperity is not limited to your income.
Considering the rate of inflation, buying a life insurance term planis a much affordable way to secure your family’s future.
A term plan offers a comprehensive insurance cover for your family in return for affordable monthly/annual premiums.
- Protection Against Severe Illnesses
With rising medical costs, a term plan is a valuable addition to your financial portfolio. It helps you manage the uncertainties of life prudently and affordably. Nowadays, various term plan options offer additional protection against critical illnesses such as cancer, heart attack or strokes. As you know, the treatment costs of such severe illnesses are becoming too hard to afford; a term plan can help youavail of quality treatment without having to dig deep into your savings.
You can add a critical illness benefit rider to enhance your basic term plan coverage. Also, the additional premium paid towards availing the critical illness coverage benefitis tax-deductible under Section 80D of the Income Tax Act.
Types of Term Insurance Plans
It is crucial to determine your family needs and choose among the options available forthe life insurance term plan.
You can choose from the following:
- Basic Term Plan
A basic term plan comes with a life cover and pays the death benefit as a lumpsum. It does not include any maturity benefit.
- Term Plan with Monthly Income
A term plan with monthly income provides you with the option toensure a regular steady income to your loved ones along with the lumpsum death benefit.
- Term Plan with Growing Monthly Income
As you know, inflation is our biggest enemy. A term plan with a growing monthly income gives you the death benefit as a growing monthly income for your family apart from the lumpsum amount.
- Term Plan with Return of Premium
Term plan with return of the premium option ensures that you get back all the premiums paid at the end of the maturity benefit.
Secure your Future Goals with a Term Plan
Life is uncertain and unpredictable and can throw surprises at you when you least expect them. Thus, it might be possible that you are financially under-prepared for a crisis when it arises. This is when a term plan comes handy.
Affordable term plan options from reputable insurers such as Max Life Insurance offer comprehensive benefits to protect your loved ones against death, disease and disability. You can also use a term plan calculator available online to determine your monthly premium payable and manage your protection wisely.