As the head of the family, you have the added responsibility of providing for your loved ones even in the face of unpredictable events, such as untimely demise. That is why financial experts recommend investors to look for the best term insurance in India that helps safeguard your family’s financial future if you are no longer around.
A term insurance is a type of life insurance policy that you should invest in depending on your age and the life stage you are on. Planning ahead for such eventualities will help prevent monetary turmoil, should something happen to you.
They are the most basic and cost-effective type of life insurance products that can help secure your dependents’ financial wellbeing at an affordable cost.
If you are wondering why you need the best term insurance in India, this article will tell you why. Here are some reasons why you should consider adding it to your investment portfolio.
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- Lowest premium
One of the most significant selling points of a term insurance is its cost-effectiveness. When you invest in the best term insurance in India, you get the maximum coverage for the lowest premium. The premium of these plans is lower than other traditional forms of life insurance because it provides only life protection without any additional maturity benefits. That is the reason they are called a simple and pure form of the life insurance policy.
- Save money by investing early
If you start investing early, you will save even more because your age and the policy tenure influence the premium costs. If you buy a term plan at an early age and life stage, your premium will be much lower.
- Flexible tenure
Unlike other life insurance products that require longer commitment, you can get a term plan for as low as 10 years. For example, these types of plans are best if you have long term loans, such as a home loan, for a period of 10 years. You can take out a policy equivalent to the amount and duration of the loan to ensure that your family doesn’t have to bear its burden if something happens to you during that time.
You can also apply for long term plans as per your investment and budget requirements. Generally, it is possible to invest in a term plan up to the age of 70 years.
- Flexibility to increase life cover
As you progress in life, your income, as well as responsibilities, will also increase. Therefore, the best term insurance in India is the one that accounts for these changes. Term plans are often flexible that allow you to improve life for a specific percentage at set intervals. This will enable you to expand your coverage as your income increases.
- Fixed premium
Once you and your insurance provider agree on a premium, it will remain fixed throughout the policy tenure. Therefore, you can rest assured that the amount you choose will not increase.
- Add-on benefits
Just like you look for health insurance benefits when buying a medical policy, you should do the same when looking for a term plan. Riders are add-on benefits that allow you to supplement your policy’s coverage and make it more expansive. For instance, you can add riders like critical illnesses or accidental death, giving you a lump sum benefit over and above the death benefit. This money can then be used to pay for your medical treatments or daily life expenses, depending upon your needs. Riders can be added for a nominal premium.
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- Tax saving benefits
According to section 80c of the Income Tax Act, you are eligible for tax deductions for up to Rs. 150,000 per annum. Even the death benefit the nominee receives is tax exempted u/s 10 (10D).
- Can be bought online
It is very easy to buy a term plan these days. You can simply get online and find the best term insurance in India at the click of a button. Use various online tools, such as premium calculators and comparison tools, to assess all the benefits carefully. It will help you make an objective buying decision. Once you have chosen the policy that best suits your needs, you can follow easy steps to make the purchase.
If you are a breadwinner in your family or a new parent, buying a term insurance is not only a wise investment decision but a crucial one. It will help you protect your loved ones against life’s uncertainties. Now that you are well aware of the policy benefits, now is an excellent time to start looking for the best term insurance in India that will fit your financial portfolio perfectly.
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