Is it Good to Buy a Term Insurance Plan in 2024?


5 min read

Updated on Dec 23, 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 2024? Let us find out!

Term Insurance from PayBima

What do you Understand about Term Insurance?

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.

Why to Buy Term Insurance?

Term insurance is an effective way to secure your family. Below are some reasons why one should buy term insurance in India:

High Coverage

All round protection

More savings 

Tax benefits 

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.

What are the Benefits of Purchasing Term Insurance  Policies?

As already stated, there are several benefits of purchasing term plans. Some  of them are mentioned below:

1. Offers High Coverage/Sum Assured:

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.

2. Tax Benefits u/s 80D, 80C, 10(10D):

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.

3. Easy to Understand 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.

What Factors should be Considered While Buying a Term Insurance Policy?

There are several important variables which need consideration at the time of buying term insurance online:

  • You should consider the coverage requirements of your family. Depending on the size of your family and the number of dependents, you can  decide the coverage amount you want for your term plan
  • The next thing to consider is the tenure of policy that you are looking for. So, depending on your requirement, you can check for how many years you want to stay covered under the plan.
  • Several additional riders are available with term plans, which you can opt for to enhance the coverage of your plan at a nominal extra cost.
  • The claim settlement ratio is another crucial aspect that needs to be considered while buying a term insurance policy.

Popular Life Insurance Companies India, 2024

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.
Term Insurance from PayBima

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FAQs: Is it Good to Buy a Term Insurance Plan in 2024?

What are the various types of term life insurance in India?

~ Term plans for family
~ Term plans for Spouse
~ Term plans for NRIs
~ Term Plans for Senior Citizens

What are the best term insurance plans in India?

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

Why is term insurance better?

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.

Is term insurance good for your family's monetary security?

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.

Why should I buy term life insurance?

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.

Is term insurance worth buying?

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.

What are some best term insurance plans for NRI?

~ Bajaj Allianz iSecure Plan
~ ICICI Pru iProtect
~ Kotak Preferred Term Plan
~ Amulya Jeevan Term Insurance Plan

Other Term Insurance Products

Aug 11, 2023
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PayBima Team
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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