Term Insurance today is an imperative investment that a person has to make in order to protect themselves from financial duress in difficult times. The reasons as to why a person should buy the best term insurance plan lies in the benefits and features offered by insurance providers who have created plans and incentives for those striving to plan ahead.
What is term insurance?
A life insurance term plan is made effectively to cover the needs of the insured and their dependents through an assured benefit sum in the event of the policyholder’s demise. The best term insurance plan in India is considered to be one of the most affordable means of securing one’s future where premiums are low and one can customise their coverage and payout methods as per their convenience.
The best term insurance plan can be a useful resource and a lifeboat for families undergoing financial distress in the absence of their primary income earner. Understanding what is term insurance and identifying the best term insurance plan and is an imperative choice that should be made by those starting their insurance journey.
Before determining the best term insurance plan within the variety of options available, one has to first understand the features that make a life insurance term plan one of the most reliable insurance plans today. Let us look at the features one can expect from the best term insurance plan in India:
1. Affordable Premiums: The more complex a plan is, the higher the premiums for them are. Even the best term insurance plan in India is one that is simple and accessible to people across all income strata. Hence, while choosing a life insurance term plan is best especially for those who are starting out in their professional careers, one can choose to go for a term insurance plan as they are one of the most affordable plans available in India.
The premiums that are paid towards a term insurance plan can be as low as Rs 600 for a coverage of Rs 1 crore. These prices ensure affordability for the policyholder, and a significant amount for the dependents to avail in the event of the insured person’s passing or at the time of maturity. Premiums can easily be added to one’s monthly budget as a recurring expense that does not financially strain the policyholder.
2. Death Benefit Payout: The amount that is paid out to the beneficiaries as denoted by the policyholder is one that is assured and handed over to the beneficiaries of the policy at the time of the insured person’s passing. While choosing the best term insurance plan in terms of payout options, one should look for plans that can be customised into a staggered monthly income instead of a lump sum if deemed fit for the beneficiaries.
3. Riders: A term insurance plan with its variations and abundance of options can be an ideal choice for people who wish to have robust financial visibility for all unforeseen situations that may arise in their life. Therefore, the best term insurance plan can be expected to offer additional riders and benefits that can help policyholders prepare for situations that are not limited to death.
One can add riders for Income, Waived Premiums, Disability, Accidental Death or even Critical Illness in their existing term insurance plan. The cost of these riders added to the basal premium cost, hence one should choose after adequate deliberation.
4. Tax Benefits: Since lawmakers understand the universality of needing to secure one’s future in the face of unforeseen emergencies; the premiums paid for a term insurance plan and the payout sum thus received from the same at the time of maturity is exempted from taxation under Section 80C and 10(10D) of the Income Tax Act, 1961.
Investing in the best term insurance plan is therefore an ideal choice of insurance and investment where the taxpayer can avail a tax deduction of up to Rs. 1, 50,000 from their net taxable income on account of the investment premiums they may have paid.
5. Return of Premium: Since a standard life insurance term plan does not offer any maturity benefits; one can avail return of premiums in the event the insured lives beyond the policy tenure. After policy completion one can receive their premiums except for the taxes, and additional rider costs.
The purchase of a life insurance term plan is more or less a simple and intuitive process today with the benefits of online resources as well. If one is well-equipped with their finances and visibility before purchasing, they can find the best term insurance plan in India with little effort. To explore further into purchasing, you can reach out to financial advisors over at different insurance provider websites, or meet with financial advisors who will provide assistance through every decision and feature before you commit towards safeguarding your future.