The term insurance plan is also life insurance which will provide coverage to nominee or beneficiary of the insured person for a certain period. In the event of death, the recipient or the nominee will be paid death benefits. These benefits can be in lump-sum, monthly amount or combination of both. There are some insurance companies who coverage for partial disability if the policyholder’s monthly income is disrupted. The finance experts have always suggested buying term insurance plans for a stress-free life. Let us see why.
Term insurance benefits
1. Lump sum benefits
In the event of the sudden death of the policyholder, the beneficiary or nominee will be getting lump sum amount as coverage. If the policyholder is the sole bread-earner of the family then, this amount proves to be crucial for the survival of the entire family. There will be lots of expenses, and that can be covered with money received from the coverage. Furthermore, this coverage can be obtained in terms of the monthly amount as well. It will regulate the expenditure as there are good chances of one spending the entire lump sum amount.
2. High life covers at low premiums
Low premium is one of the major benefits of term insurance and especially buy it online. When you buy term insurance policy online, there will not be cost brokerage or agent. In addition to that, if you buy term insurance plan at a young age, the premium amount will be low. That being said, the early you buy a term plan, lower will be the premium.
3. Tax Benefits
One of the prominent reasons behind the investment is to save tax. Term insurance premiums are liable to tax benefits. The premiums up to Rs. 1.5 lakh are exempted from tax under the Income Tax Act 80C. Furthermore, the maturity or death benefit, i.e. the amount beneficiary will be getting is exempted from under 10 (10D).
4. Death Benefit options
The recipient or the nominee can have the death benefits in the different form. You can either get a lump sum amount or monthly payment or even the combination of both. It will help your family to manage the monthly expenses and also manage inflation impact.
5. Riders term policy
There is another reason as for why finance experts suggest term insurance. It has optional rider benefits that will enhance the policy on the addition of minor premium. Generally, the accidental and critical illness riders are popular among the policyholders.
Term insurance is something you need to invest in a young age. It has several benefits that your family need in your absence. You can explore different options choose the best term insurance.
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