Financial planning is essential because it gives you the power to fight against the uncertainties. Importance and necessities of having term life insurance are very high. Due to a lack of financial awareness, many people avoid purchasing these financial assets. If you are a sole bread earner of the family, then you should opt for the term insurance plans.
What is term insurance?
Term insurance is a form of life insurance that offers coverage for a specific tenure. It can be enrolled at a meagre premium rate. And the payout can be customized as per the requirements of the insured.
Either you can take in lump-sum or divided monthly. Plus, the premium you will pay is tax exempted. In case of death of the insured, the benefited amount will be given to a nominee.
Now you may be thinking, why do I need term insurance? It’s crucial for you and your family’s well-being. Purchasing term insurance is the most affordable way to secure your family from financial uncertainties. This plan provides financial security to your loved ones in case of your death.
Reasons to Purchase Term Insurance Plans:
In a nutshell, the need for the term insurance plans depends upon your financial status, family’s financial goals, and a few more. If you want to plan for family or liabilities, then a term-insurance is must-have.
Here are the top reasons that make term insurance a must-have:
- Minimal Cost
Many people cannot afford to put aside a considerable sum for life insurance. But, they can avail the term insurance plan at Rs. 490 and get 1 crore life coverage. Compared to other investment options, term insurance is one of the most affordable financial products.
2. Financial Security
Another important reason to purchase this plan is financial security. With term insurance, you have a financially secure life. It safeguards your family when you are not around. In your absence, they can live their life hassle-free.
3. Comprehensive coverage
However, term insurance is a form of life insurance, but you can increase the coverage of this plan by paying an additional premium. Cover for critical illness, accidents, and disability can be to a term insurance plan.
4. Fixed Premium
Term insurance is a basic insurance plan that comes with fixed premium rates—the sole function of a term insurance plan to secure your family financially. And the sum assured and premium rates are not associated with the market performance.
5. Increased Life Cover
With the improvement of the lifestyle, the need for a family increases. The term insurance plan offers insurance cover linked to life stages. The sum assured automatically gets increased at a specific rate as per the age of the insured.
6. Income Tax benefits
If you want to save your income from the pocket burning taxes, then you can invest in a term insurance plan. You can claim tax deduction up to Rs. 1.5 lacs under a section 80C of the income tax.
We hope now you understand the importance of purchasing a term insurance plan. In the race of improving the lifestyle, it is also essential to build the assets for the family.