We live in a fast progressive world, where there are infinite possibilities and so are the uncertainties. New financial options have increased the desire of wealth gain among individuals and have resulted in the rise of inflation. To ensure financial protection for the family and to create a strong financial backup for them, it is important to make a wise financial decision.
A term insurance plan is the best way to provide financial security to your family, specifically if they are entirely dependent on you. A term insurance plan is one of the financial instruments that will help keep you rolling in case of an emergency. Moreover, it helps to provide financial protection to your loved even in your absence.
Read further to know how the term insurance plan helps to secure the financial future of your family.
Easy to Understand
One of the key benefits of a term insurance plan is that it the easiest to understand. Moreover, it does not include components such as investment, savings, and so forth. With a term plan in place, the policyholder needs to pay the term plan premium timely and in return of that life, coverage is provided to the insured for a fixed policy term.
Another aspect of a term insurance plan is that as an insurance product it is flexible and it gives the liberty to change the frequency of the premium, premium and coverage sum, duration of the policy and payment of the premium term as per the convenience. Such a feature is slightly difficult to be found on other products of insurance and makes a term plan a step ahead when compared to the other insurance plans.
Customize as per the Requirement
You can customize the term insurance plan as per your requirement. If you want to add additional coverage to your base plan then you can consider purchasing the add-on rider benefits to enhance the coverage of the policy. The various riders offered by the term insurance plan are:
- Critical Illness Rider
- Accidental Death and Disability Benefit Rider
- Income Benefit Rider
- Waiver of Premium Rider
High Benefits and Cost-effective
Purchasing a term insurance plan is very cost-effective and does not create a hole in your pocket. If you are a young policy buyer, then you can buy a policy cover up to Rs 1crore at a minimum premium rate. The advantage of purchasing high insurance coverage at a nominal premium rate can be gained only in a term insurance plan. Not only these plans are cost-effective but also offer pure protection to the family in case if an eventuality and also take care of the future financial liabilities of the family.
Financial Protection to the Family
This is one of the key highlights of a term insurance plan. Whoever is the earning member in the family, the financial security of the family is of utmost importance. This can easily be achieved by buying the best term insurance plans that fulfil the requirements. Higher the coverage sum provided by the term plan means the more the family is secured in case of any mishap. A term plan also ensures the in case of any liabilities or loans the family need not suffer in the coming times’ in terms of finances.
Provides the Benefit to Accumulate Wealth
In case of any eventuality, a term plan not only finically secures the family but it also helps to accumulate wealth for the prospective times and helps to achieve the financial objectives. The insurance coverage that is offered within the plan enables to forgo any of the liabilities even in your absence. A term plan also offers benefit like term return of premium wherein if the policyholder survives the complete policy term then the advantage of the return of premium as the survival benefit can be availed.
Undoubtedly, tax-saving plays an important role when it comes to financial planning. It is a good thought to save money and there are various ways of doing so one of the most opulent alternatives to save tax is buy a term plan. The premium that is paid towards the term plan with the maximum limit of Rs 1.5 lakh within Section 80C is entitled to tax exemption. Moreover, the survival benefit that is offered in the term Return of Premium plan is also applicable for exemption of tax within Section 10(10D).
Wrapping it Up
With the above-mentioned points, we can clearly understand that term insurance is an essential life insurance product that offers incomparable benefits at a minimum premium rate. If you want to invest in a pure protection plan, then undoubtedly term insurance is the one-stop solution for you.