5 min read
Updated on Sep 22, 2023
Investment planning is as crucial as earning a livelihood. For the key earning member of a family, it is all the more essential to secure their dependents with a financial cushion. For a long time, term insurance plans have been used by people to secure the lives of their loved ones. Being cost-effective and reliable, term plans serve as a safety net during sudden emergency situations.
Unlike earlier buying a term plan is no longer a tedious task as it can be done easily online. It is important to choose the best term insurance policy and add it to your investment portfolio while planning your future investments.
So, is it a financially sound decision to buy a term insurance plan in the year 2023? Let us find out!
Term insurance plan is a life insurance product that allows a cost-effective way to secure a family in case of the sudden demise of the policyholder. Term plans offer death benefits to the nominee when the insured is no more or when the insured dies (during the policy tenure). It is an ideal investment option as it is cost-effective and easily accessible. Moreover, since unforeseen situations do not come with prior notice, investing in a term plan is important. This will ensure your family’s financial crisis is handled even when you are not around.
Term insurance is an effective way to secure your family. Below are some reasons why one should buy term insurance in India:
All round protection
Coverage up to 99 years
Protection from liabilities
Term plans allow the insured to get life coverage of a lump sum amount by paying a minimal price. So you can get ample coverage at an affordable cost.
The add-on benefits offered with a term plan, such as critical illness benefits, waiver of premium, and income on disability, are some such riders that allow the insured to protect against risks.
The premium amount of the plans is available at a reasonable price, especially if you buy the term plan at a young age. This helps in saving you money on premiums.
The insured can also avail tax benefits on the premium paid for a term plan.
Most term plans offer lifetime coverage of up to 99 years
In case of the sudden demise of the policyholder, a term insurance plan help the family members to pay debts, liabilities, etc.
As already stated, there are several benefits of purchasing term plans. Some of them are mentioned below:
Term plans are simple life insurance plans available at a low premium price. Hence these policies are easy on the pocket. Buying a term plan at a young age will allow you to avail the plan at a low price. Further, buying plans online also allows further discounts and benefits.
Term insurance aims to secure your family’s financial future. But it has another benefit as well, and that is the tax benefit. So, under term insurance, you can claim a deduction of up to INR 1.5 lakh under section 80C of income tax. Likewise, you can also claim a tax deduction of up to INR 25,000 u/s 80D of income tax if you are paying a premium for a critical illness rider.
Further, you may also note that the death benefit claimed by the nominee at the time of payout is completely tax exempted under term plans.
The term insurance policies are easy to comprehend, and thus they are mostly preferred by people. Term plans are pure life cover focused on financially supporting your dependents. A policyholder must pay the premium of the plan on time to continue availing of the benefits of the plan.
There are several important variables which need consideration at the time of buying term insurance online:
To Sum Up
A term insurance plan is an agreement between an insurer and a policyholder. Term plan is an investment that secures a family financially. Hence it is advisable to invest in such plans. Moreover, the term plans can be easily bought online. But it is good to research and compare plans before buying them to get the best deal and save money.
Browse Mahindra PayBima Blogs to read interesting posts related to Health Insurance, Car Insurance, Bike Insurance, Term Life Insurance, and Investment section. You can visit Mahindra PayBima to Buy Insurance Online.
~ Term plans for family
~ Term plans for Spouse
~ Term plans for NRIs
~ Term Plans for Senior Citizens
There are several good plans to opt for, such as:
~ SBI Life Insurance
~ Aditya Birla Sun Life Insurance
~ Life Insurance Corporation of India
~ ICICI Prudential iProtect Smart
Term plans allow one to avail huge coverage/sum assured at a reasonable premium price. It helps a family to accomplish their long-term financial goals and secures them in the event of the death of the head earning member.
Yes, term plans provide a family with financial protection in case of the absence of the head of the family or the policyholder. So, if you have dependents and your household primarily runs on your salary, you must secure your dependents with a term plan.
You should buy a term plan for many reasons, including high coverage, low premium, all round protection, protection against critical illness, tax benefits, protection to your dependents in your absence, and so on.
A term insurance plan helps a family to meet their day-to-day expenses in the unfortunate event of the demise of the key bread earner. So, a term plan is worth buying as it allows several benefits compared to other life insurance products.
~ Bajaj Allianz iSecure Plan
~ ICICI Pru iProtect
~ Kotak Preferred Term Plan
~ Amulya Jeevan Term Insurance Plan
PayBima is an Indian insurance aggregator on a mission to make insurance simple for people. PayBima is the Digital arm of the already established and trusted Mahindra Insurance Brokers Ltd., a reputed name in the insurance broking industry with 17 years of experience. PayBima promises you the easy-to-access online platform to buy insurance policies, and also extend their unrelented assistance with all your policy related queries and services.
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