Today, we live in a dynamic, ever-changing world full of boundless opportunities and unknowable perils. The rising cost of goods and services can be attributed partly to people’s increased appetite for financial risk due to expanded access to alternative investment vehicles. Making a prudent financial choice is essential for providing security for one’s loved ones and setting up a solid financial safety net.
If your family relies only on your income, purchasing a term plan is the best method to protect them financially in the event of your untimely passing away. A term insurance policy is one of the financial tools that will keep you afloat in the event of an unexpected expense. Moreover, it aids in providing financial security for your loved ones, even in your absence.
Here’s how a term insurance policy can protect your family’s financial stability:
- It provides a lot of value at a low price: Buying a term insurance policy is a wise financial decision that won’t break the bank. With a term insurance policy, you can purchase comprehensive protection for a relatively low premium. These plans cover the family’s future financial obligations and provide pure protection in an unexpected tragedy. It even offers certain term insurance tax benefits.
- Gives you a chance to get rich: Term insurance not only protects loved ones financially in the event of the unthinkable but also affords the chance to save for the future. Your dependents may be able to avoid financial hardship in the event of your untimely demise, thanks to the protections provided by your term plan. A further advantage of specific plans is that if you outlive the policy’s term, you will receive the total amount of your premiums as a survival bonus. * Standard T&C Apply
- Ensures a secure financial future for the entire household: This is the main selling point of term insurance. As a breadwinner, a woman has the same obligation as any man to make sure her family is financially provided for even when she can’t be there. Term insurance is an easy way to accomplish this goal. If you’re worried about leaving your loved ones financially vulnerable in an unfortunate event, consider investing in a term life insurance policy with a higher coverage level. The term plan also covers the family’s future financial obligations, such as loans, debt, etc.
- Affordable: As an additional perk, you get this with a term policy. Women are eligible for premium reductions on the term insurance policy. This is because gender is just one of many factors considered when determining the cost of a policy’s premiums. There’s a high likelihood that Insurance companies will insure a female customer since ladies, according to statistics, live an average of five more years than males. Due to this, women receive more premium concessions than men do. Don’t believe us? Use the term insurance premium calculator to see for yourself.
- Gain from taxes: To fully appreciate the significance of tax savings in financial planning, you need only be a wage earner and a member of the tax bracket. There are various strategies to reduce your taxable income, but buying a term insurance policy is among the most common. U/S 80C of the Income Tax Act provides a tax deduction for term insurance premiums paid up to Rs.1.5 lakh. Additional tax relief is available under U/S10 (10D), which exempts the term insurance tax benefits.
* Currently, there are 2 tax regimes in India – new and old. To get the tax benefit you desire, choose the correct one after consulting an expert. You can opt for a regime change during the next financial year.
- The consistent choice for financial investments: Insurance is more than simply a safety net in the event of job loss; it’s also an investment that, while the policy is in force, can generate a sizable return on the premiums paid. Many life insurance policies the policyholder selects provide substantial payouts when the policy reaches maturity. So, it serves a dual purpose by allowing the buyer to realise investment objectives while also shielding the family from the financial impact of an unexpected loss of income.
- Very straightforward: Term insurance is popular because it is simple. Policyholders in a term plan have only to pay the policy’s premium regularly in exchange for providing life insurance to the insured for the policy’s specified duration. You can find your expenses for yourself with a term insurance premium calculator.
The Term plan policies provide adequate protection for a more reasonable premium. However, before selecting the finest term insurance plan for its purposes, one must conduct a thorough analysis of their situation, taking into account details such as the amount of coverage desired, the insured’s age and financial crisis, the anticipated financial demands on the family, and so on.