It is impossible to predict what the future holds for you. In the current times of uncertainties, it is your responsibility to secure your family’s financial future so that they can live a comfortable life even after you are gone. One of the best ways to accomplish that is to purchase a term life insurance policy.
Term insurance is one of the most popular types of life insurance policies in India. It is a cost-effective way to mitigate the future risk, and secure your family from facing financial hardships. It has the lowest premium among all other life insurance policies in India, and provides you with a high coverage.
If you are a first-time insurance buyer, it is natural to feel sceptical about buying term insurance. You may be wondering if it is a worthy investment, especially since it does not offer any maturity benefits or returns. Here are five reasons why buying the best term insurance policy is worth the investment.
Affordable
Term insurance plan is also commonly referred to as pure protection plan as it does not have any investment or savings component. Hence, the premium for term insurance is the lowest among all other life insurance policies, and is affordable for all. Today, you can easily purchase a term insurance policy with a sum assured of Rs. 1 crore with a premium starting from Rs. 500 per month or Rs. 6000 per annum.
It helps secure your family’s financial future
As an earning member of the family, you may have certain responsibilities and obligations towards your dependents, including children, spouse, parents, etc. In the event of any unfortunate incident like your sudden demise or accident that leads to permanent disability, your family may face immense hardship, while dealing with the emotional stress of losing a family member.
However, you can protect your family from facing such tough situations by purchasing a term insurance plan. In the event of your demise, the insurer will pay the sum assured to the nominee. They can use the amount to take care of regular expenses for a few years and be financially independent.
Pay off debts
If you have taken a big-ticket loan like a home loan or car loan, you must repay the EMI (equated monthly instalment) diligently till the end of the loan tenure. However, in the event of your death before the loan term, the repayment burden will fall on your family. This can put them in a difficult situation; they may have to use the entire savings to pay off the loan.
However, if you have a term insurance coverage for your family, you can have a peace of mind knowing that your family will never struggle to repay the debts. They can use the proceeds from the insurer to repay the loan along with the interest.
Rider benefits
Most term insurance policies allow you to purchase additional protection known as riders or add-ons with your basic plan. The riders allow you to get coverage against specific risks that are not covered under the regular term insurance policy. Some of the best riders you can consider buying, include critical illness rider, premium waiver rider, accidental death benefit rider, etc.
Tax benefits
Apart from securing your family’s future, and giving you financial stability, term insurance allows you to get tax benefits and reduce your annual tax liability. Under Section 80C of the Indian Income Tax Act, the premium for term insurance is eligible for deduction up to Rs. 1.5 lakhs in a financial year.
Final Word
Thus, with so many amazing benefits, term insurance is a must-have for all, and it is totally worth every penny of your investment.
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