When planning for life insurance coverage, checking whether it aligns with your financial goals and needs is essential. Getting a life cover or term insurance without knowing the actual need can put a hole in your pocket, as they come with high premium rates.
But you can get yourself a term insurance plan, which is one of the most affordable types of life insurance that offers life cover protection for a specific period. They can be customised based on your insurance needs, providing you coverage at an affordable rate, and supporting your loved ones in case of your untimely death by handing out a lump-sum payout.
This payout can cover mortgages, education, or any outstanding debts based on coverage reasons, giving you peace of mind even when you are gone. In this article, we shall briefly understand how term insurance security is the best financial security you can give your loved ones.
- Cost-effective premiums
Term insurance plans are the most cost-effective type of life insurance, as they are the only life insurance that gives you ample coverage at an affordable premium rate. In addition, you also get financial protection for your family in case of untimely death from any financial liabilities.
- Helps to build wealth
Term plans can act as investment plans for your beneficiaries. If you choose an adequate sum assured, the death benefit paid out in your absence can even help them make major important purchases. With this amount, they can eliminate the burden of liabilities and debts that can otherwise affect their savings.
- Financial security
Term insurance provides financial security to your family as it can be customised based on your goals. Be it your spouse’s retirement or your children’s further education, you can make provisions for their financial security through the sum assured of term insurance online, which is highly customisable.
- Comes with extra benefits
One of the best advantages of term insurance plans is that it offers various discounts, especially when you purchase term insurance online. Moreover, based on a number of factors, such as age or gender, you can also benefit from lower or more affordable premiums.
For instance, when you opt for a Tata AIA term plan, you can benefit from preferential premium rates if you are a woman policyholder.
- Rider benefits
Riders are optional benefits that can be added to your policy for an additional premium. If you need coverage against a specific risk or event, simply choose the appropriate rider and add it to your term plan for benefits over and above your base plan’s sum assured.
- Tax benefits
You can get tax benefits and various stages, such as.
- First, you receive tax incentives for Section 80C (term insurance) premium payments during the coverage period or policy term.
- You can also benefit from a tax exemption on the death benefit of your term plan under Section 10 (10D) of the Income Tax Act 1961.
A term policy is the best way to provide financial security for your loved one, as it comes with the advantages mentioned above. Also, it is essential to thoroughly research the term insurance and make sure it aligns with your goals and customise the policy based on your goals and budget if you need sufficient term insurance security. You can also get your term insurance online, as getting it online makes it super affordable due to discounts and is easily comparable for cracking the best term insurance deal for you and your family.