No matter how financially hassle-free can a savings plan be, there’s no denying the significance of term insurance policies over other life insurance coverage! Given the uncertainties in life, a term plan can serve your family the kind of economic support they would require after your demise.
Why Choose a Term Insurance Policy?
Being the simplest and most cost-effective plans, term insurance policies protect your family’s financial future at a budget-friendly price. In comparison to other insurance coverage, term plans happen to be minimal. To introduce you to its life-saving benefits; here’s presenting why term plans are prerequisites concerning your financial goal for your family.
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Lower Premium
Such an insurance plan can offer you the highest life cover or death benefit in comparison with the nominal plan. As a matter of fact, it gives a life protection plan.
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Low Tenure
You can apply for such a policy as a minimum of 10 years. Shorter plans can also be availed when you have a personal loan. You can take the term plan for a decade for an amount equivalent to the home loan in case the home loan is for 10 years. You also can apply for a longer-term policy that covers sequential or multiple loans.
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Ill Coverage
With term insurance policies, you can get ill coverage. The ones who suffer from a critical illness can avail this insurance benefit. However, it is recommendable to choose this coverage as you never know what will happen in the future.
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Rider Benefits
Strengthening the term insurance plan can be available by opting for multiple rider benefits. The additional rider benefits are offered by the insurance company and can include it in the plan. The term benefits can differ from one to another insurer.
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Death Benefit or Life Cover Payouts
As a breadwinner, one can have liabilities and pay EMIs like home loans and car loans. When the breadwinner expires, the liabilities come on that family. This term insurance benefit will play a significant role. The nominee receives a massive amount with multiple payouts. One can get the option of obtaining income every month along with a massive amount as a death benefit.
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Maturity Benefits
A term insurance plan can provide insurance coverage in the form of death benefits to the plan’s beneficiary. No maturity benefit gets offered by the term plan. Nonetheless, specific plans like TROP or Term Return of Premium Plan provide maturity benefits in the form of premium returns if the insured would survive during the tenure plan.
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Income Tax Benefits
The term insurance plan also provides tax benefits within 2 different sections of the Income Tax Act. Under Section 806, one can avail of the tax benefit on premiums paid towards policies. Under Section 10(10D), the maturity benefits provided by insurance policies are eligible for the tax exemption of Act 1961.
After Everything Else
Owing to the increasing awareness of life insurance, the term policies appeal to most because of life cover’s inherent benefits at the lowest premium. Besides offering income tax benefits, it gives you the peace of mind for the financial security you require for your near and dear ones in your family.
