Protect your family’s financial future with term insurance

A term insurance policy is a boon in a world where the possibilities are endless and so are the uncertainties. A life insurance policy is a smart investment you need to make to make sure you and your family are well protected. The benefits of term insurance plans continue even after the premature death of the policyholder. In such a case, the family members of the policyholder will receive monetary assistance as promised by the insurance company so that they can continue to live their lives in a way that they are accustomed to. The duration of these policies can range from five to forty years, depending on several factors of the policyholder such as age, budget, etc. It is an affordable way to maintain the goals of your loved ones in the event of death, a term insurance plan is practically a mandatory investment.

What is a term insurance policy?

Generally, a term insurance plan is a type of protective life coverage that provides coverage to the insured person for a stipulated period of time. In the event that the insured person dies unexpectedly during the active insurance period, the nominee or beneficiary will receive the insured amount. It is a sure way to ensure that your family members remain financially protected in the event of death. Unlike many other insurance plans and traditional endowment plans, a term insurance policy has no investment options, which means that the insurer will only pay the beneficiary or nominee. in the event of the policyholder’s expiration.

Features of a term insurance policy

Some of the main features of term insurance policies that you may not be familiar with are:

– This is a profitable plan

– These types of policies do not give the option of investing

– You only have to pay the policy premium until you retire

– In addition to the lump sum, you can choose to receive monthly payments, which increases your income

– The sum insured will be paid to the insured in the event of the death of the policyholder

Benefits of a term insurance policy

Some advantages of term insurance policies are;

1. Financial security

Temporary contracts financially ensure the future of the members of the insured’s family through payment indemnities that they pay them in the event of the insured’s death. Dependents of the policyholder such as children, partner, parents and even siblings would be released from the financial burdens imposed on them due to the death of the breadwinner. Family members can use this amount for their expenses such as raising children, hospital needs, funeral expenses, etc. Honeymooners, new parents, businessmen and anyone else with high financial responsibilities can benefit from term plans.

2. Low premiums

Among the most affordable types of insurance available in the country, term insurance policies offer similar amounts of coverage to traditional life insurance plans, but at a fraction of the premium payments required. Due to the short occupancy times, which can only be extended by periodic renewals, lower premium payments are calculated.

3. Coverage for additional illnesses and risks

Optional endorsements such as critical illness and accidental endorsements are offered as well as term insurance plans that you can opt for if you want additional coverage. This small amount can be very useful for policyholders as it covers medical costs in the event of accidental impairments and serious illnesses. In addition to this, you can also increase the coverage of your policy on important occasions in life, such as the birth of a child, marriage, etc.

4. Death benefits

The flexibility to choose the death benefit from a number of options is offered with term insurance plans. Usually, the sum insured is paid in the form of lump sum to the beneficiary in the event of the death of the policyholder, but you also have the option of receiving this sum in installments, as proposed and agreed upon when taking out the said contract. . It can build income for those who need it and help further achieve their life goals and protect their assets, among other expenses.

5. Long-term coverage

The earlier you subscribe, the more advantageous the contract becomes for those who wish to extend their life coverage to 99 years. This can be taken if premium payments are made for a limited period of time.

6. Tax exemptions

All premiums paid on term insurance plans are exempt from tax under section 80C of the Income Tax Act. While the primary purpose of these insurance plans is to protect the financial interests of the policyholder’s family members, tax exemptions are a welcome option for saving money. In addition to this, the death benefit received at the time of the policyholder’s death is also tax exempt, so the beneficiary will get the full amount as insured. This is a great advantage, but subject to the payment of premiums and timely renewals. Expired policies will not have any benefits, if the person does not pay, even within the given grace period.

7. Ease of purchase

Completely eliminating the third-party agent such as a broker, you can now choose, calculate premium payment amounts, pay premiums, renew policies, and buy policies online. It’s easier, faster and in many cases more lucrative because many insurance companies prefer this mode of communication and, to encourage it, offer discounts and additional benefits.

To get the most out of your term insurance policies, it is imperative that you choose the right policy to purchase and provide optimal benefits for your family members. Plus, while offering many benefits, a term insurance policy is subject to a good credit rating and complete honesty on your part. Illegal practices and fraud are strictly prohibited and you could lose anything you have won. Buy a policy that works the best for you in the long term and enjoy the benefits in retirement as well.

Disclaimer: This is a company press release. No HT journalist is involved in the creation of this content.

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