You work day after day to fulfill your woven financial goals in your lifetime. At some point, you may also lay out a strategy to fulfill them but you never know when life takes an unprecedented turn. In the event of an untimely death, all your goals are jeopardized.
It’s an unfortunate event for your family too that can leave them mourning. Although your value can never be replaced with any amount of money, a term policy can financially protect your family in such difficult times when you’re no longer around to take care of them.
This article begins with answering the most common question “What is term life insurance?” and provides you insights into the countless benefits it offers. We also recommend some of the best term plans on the market so make sure you keep reading.
What Is Term Life Insurance?
Term insurance is a basic form of life insurance policy that provides you protection against untimely death for a specified time. In the event of your unfortunate death during the policy tenure, the insurance company pays off a predetermined amount of money to your nominee.
Keep in mind that term plans don’t have any maturity benefits associated with default, unlike market-linked policies or money-back plans, but it sure does provide much higher coverage for a comparatively lesser amount.
5 Benefits of Term Policies
Now when you know what term life insurance is, you should take a look at the benefits quoted by these plans to determine whether it fits the bill for you or not. Here’s a list of benefits you can enjoy by purchasing a term policy:
- Simple to Understand
Term policies are the most intuitive insurance plans out of all, which is also the reason for their immense popularity. As it’s a pure life cover, there are not many technicalities involved and you just need to make sure that your premiums are being paid on time to enjoy the policy benefits.
- Highly Affordable
The premiums paid for a term plan are comparatively lower than conventional plans. Moreover, if you invest at an early age, you can enjoy even lesser premiums. Some insurance companies also provide additional discounts to women and non-smokers.
- Greater Coverage
A term plan also provides a higher sum assured that helps you accumulate a sufficient amount of money for your family to help them tackle any financial hardship they experience in your absence. You can enjoy coverage of up to Rs. 1 crore with a term policy, depending on the insurer.
- Multiple Tax Benefits
Apart from securing your family’s future, term plans also act as a great tax-saving instrument. As per section 80C, 80D, and 10(10D) of the Income Tax Act of India, you can enjoy tax benefits on premiums paid, health-related coverage, and payouts respectively.
- Steady Premiums
The amount of premiums determined while purchasing the policy remains the same throughout the tenure of a term policy. If you purchase this plan at a young age, you can get even lower premiums that remain steady for the entire tenure and effectively offer you more benefits.
Best Term Plans Available in India
- LIC Tech Term Insurance Plan
LIC Tech Term is a non-linked and non-participating pure risk term plan that can be availed online through an easy application process with no intermediaries involved in the process. The policy features a free look-in period of 30 days that allows you to return the policy if you’re not satisfied with the clauses within the timeframe.
- Canara HSBC OBC iSelect Star Term Plan
The iSelect Star Term plan is an individual non-linked pure risk term plan that acts as a cushion for uncertainties thrown your way in life. It’s a highly flexible term policy that can be tailored as per your requirements and life stages. The plan features a multitude of options for premium payments, coverage, and benefits payouts.
- HDFC Click 2 Protect 3D Plus Term Plan
With over nine different plan options, the HDFC Click 2 Protect 3D Plus term plan protects you against the uncertainty of death, disease, and disability. The plan offers lower premiums to female and non-smoker policyholders and offers great flexibility in terms of premium payments, the policy period, and so on. In case of disability or critical illness, the plan also waives future premiums.
- Max Life Smart Term Plan
Max Life Smart Term plan offers complete financial protection to your family by covering you against the risk of over 40 critical illnesses. You can also choose from over seven different death benefit payout options. Moreover, the plan also allows you to enhance your coverage with different riders like accidental death benefit and accelerated critical illness cover.
- Bajaj Allianz Smart Protect Goal
The Smart Protect Goal term plan by Bajaj Allianz is a non-linked pure term policy that offers comprehensive life cover and protects you against 55 critical illnesses. In addition, you can also choose to get additional coverage for your child’s education in the event of your death. The plan features four different variants to help you personalize the plan as per your requirements.
You probably have a lot going on in your life right now, and that’s why it’s important to take a minute to consider how you’re handling your finances. If you don’t have a plan in place, you could be putting yourself at risk for an uncertain future.
By investing in a term plan today, you can make sure that you won’t have to worry about money when the time comes. Term insurance is one of the most important financial decisions you will make.
It ensures that your family is protected against unforeseen events, and helps you achieve financial stability. Buying term insurance today will ensure that you are better prepared for the future!