All of us dream of a long and fulfilling life spent surrounded by the ones we love. However, life can be unpredictable and uncertain; in such cases, an insurance policy can take care of your family even if you cannot be there in person. Your insurance will look after them in case of your untimely death. That is why more people are relying on insurance to secure the future of their families. The realisation that death can take a huge toll not just emotionally but financially as well has made several people consider opting for life insurances. Over time, many Indians gravitate towards buying insurance policies to insure their lives and provide a safe future for their families.
Several types of insurance policies are available in the market; a TermInsurance plan is the most basic of insurance policies and is a popular choice for many people. A term insurance policy means that the policyholder pays a fixed premium over a certain period of time, and in case of an unfortunate event of your untimely death- the beneficiary will receive the sum assured. A term insurance plan normally has a tenure of 10-20 years or anything in between.
Let us look at a few basic information about term insurance plans –
- They are simple and require timely payment of a premium over a fixed duration of time. The premiums can be paid monthly, quarterly or even yearly depending on your convenience.
- The sum assured, the tenure, the premium – all are very flexible and can be decided according to various factors like your age, your financial status, your financial goals, your health, and the number of family members and their status in life.
- Term insurance plans are different from life insurance plans because term plans provide mortality cover for only the tenure of the policy. While a lifetime policy covers the policyholder for life.
- A term insurance plan can be tailored to fit your retirement schedule, age, and other investments and savings. It can also be clubbed with additional rider options that make it more watertight against unforeseen circumstances in your life, like illnesses and untimely death.
Term insurance plans are the perfect way to secure the future of your loved ones and not leave them in a state of economic disarray in case of your demise. Living through a pandemic has made people more aware of the transient nature of our lives, and more and more Indians are looking to get term insurance plans for themselves and their families.
Let us look at the benefits of a term insurance plan-
- The first benefit of term insurance plans is the mortality benefit which means that the insurance will be liable to give your beneficiary the sum assured in case of your untimely demise.
- The premiums paid will be returned with certain maturity benefits if you are alive at the end of the completion of the policy.
- You can avail of certain tax benefits for term insurance policies according to the Income Tax Act, 1961.
- You will have a systemic and disciplined way of saving and securing your financial status.
- You can customise your term insurance plan with rider options such as accidental death and critical illness cover for an additional cost which will further strengthen your insurance and provide a safety net from all angles.
- The sum assured will take care of immediate financial needs, if any, and the family will also receive a monthly sum of a fixed amount from taking care of monthly expenses in case of your death.
Several term insurance plans in the market can fit your requirements. You can go online and check all the details and compare and contrast between different plans. It is always imperative to read the details before making your decision. A term insurance plan will guarantee your family's safety and relieve them of any financial burdens during emergencies. As they say- "a stitch in time save nine" – a term insurance plan done on time will save your family at all times.