Investment and saving plans have gone through drastic changes over the years. People have become insightful about future savings, future income, and smart investment plans. Under the roof of long-term insurance, one can avail of the benefits of long term savings plan, death benefits, maturity benefits and secured income for the family. In the techno-savvy world, buying a policy is just a few clicks away. One may opt to buy term insurance online comparing the plans on various portals. Below are listed some key benefits of term insurance.
Affordable Premium Yield High Incomes
Long term insurance has a budget-friendly price. In comparison to any other life insurance policy, they provide economic cost. Moreover, the premiums are locked in the duration of the plan. The unsaid rule is that the earlier you buy the policy lower the premium will be. The total premium paid when you buy young is lesser than when you purchase later in life. Essentially it is better to buy term insurance online as the premium rates would be low-priced compared to offline.
Rider Benefits- Critical Illness, Accident Coverage
Riders add more value to a basic plan. Apart from the death benefit, certain plans offer supplementary coverage in the form of riders. For instance, one may choose a critical disease rider. This makes the person eligible for a monetary benefit from the company in case diagnosed with the critical illness as specified by the insurer. So, numerous riders may be added to the plan like disability cover, loss of employment cover or waiver of premium cover by paying out a small amount of additional premium. Waiver of premium waives off the payment of future payment in case of accident or illness specified by the insurer. They are of considerate value and strength to a term plan.
Assurance of Pay-out Sum
In the unfortunate event, if the policyholder dies before the completion of the plan, the beneficiary family members would be given monetary sum as assured in the pay-out. The pay-out may be a lump sum, or an annual or monthly income as opted by the insured. Thus, the term plan would have acted as a long-term saving and would aid the family financially. It can even assist the family to pay out liabilities and maintain their lifestyle.
Term plans also host various tax benefits. So along with pay-outs and savings and rider benefit you can even save some tax.
You can access tax benefits on the premium that is paid in the term policy. Also, you can take deductions or tax exemptions up to the highest limit of 1.5lakh.
The particular exemption is provided on the premium paid towards illness related coverage. One may procure deductions up to INR 25000.
The sum assured received by beneficiaries is also exempt from taxes subject to Section 10 (10D) of the Income Tax Act, 1961.
Term insurance is a must-have insurance policy that can financially secure your life from uncertainties. Hence the multiple advantages of term insurance have been listed out for you to make an informed decision.