Life, like a game of chess, puts in front of you both calculated moves and unforeseen surprises. For such times, insurance acts as your strategic play. Numerous insurance investment plans in India ensure that your family stays financially backed up by life’s unexpected turns. As you continue to work harder, insurance investments can help you build a secure future for yourself and your loved ones.
In India, family bonds are strong, and ensuring that they’re financially secure even in your absence is even more crucial. Here, term insurance steps in—a resourceful tool to shield and protect loved ones from the burden of financial hardship in case of the policyholder’s unfortunate demise.
Let’s understand its in-depth details so that you and others who wish to buy a term plan are aware of everything there is to know about them.
What is a Term Insurance Plan?
A term plan or insurance is a pure protection plan. It offers coverage for a specific period, which is also known as the policy term. During an unfortunate demise of this term, the beneficiaries shall receive a predetermined sum assured to help them with their financial stability.
Term insurance does not have any maturity benefits. If you survive the policy term, no payout is done. However, the positive side of it is the relatively cheap premium compared to other life insurance products.
Why Consider a Term Plan?
Term insurance is a basic life insurance plan. You pay premiums for a specific period. In return, your beneficiaries would receive a lump sum amount (death benefit) if something unfortunate happens within that period. Here are some other benefits of a term plan:
- Affordable Protection: Term life insurance is budget-friendly, and it gives high death benefits.
- Flexible Coverage: A term plan can be bought with various policy conditions which align with your requirements. There’s an option for you also to select a suitable period per your financial goals, such as your child’s education or major expenses.
- Tax Benefits: Premiums paid towards term insurance plans are eligible for tax deductions. Under the Income Tax Act’s section 80C, you can save on your taxable income.
- Income Replacement: Your family’s economic condition may heavily depend on your income. If any uncalled-for situation arises and you lose your ability to earn, the sum assured can act as an income replacement. It can help the dependents to carry on with their current lifestyle and pay their bills.
Choosing the Right Term Insurance Plan
With several term plans available, selecting the right one can require knowledge of certain considerations. Here are some key factors to keep in mind while finding the perfect plan for your future:
- Your Policy’s Term: Choose a policy term that goes with your financial obligations. For instance, if you have young children, a longer term can ensure their financial security until they become independent.
- The Sum You’ve Been Assured: The amount your beneficiary shall be receiving in case of an unfortunate event is called the assured sum. Consider your family’s financial needs and living expenses when determining the appropriate amount.
- Premium Amount: Compare premiums offered by different insurers for similar coverage. Remember, the premium amount often depends on factors like your age, health, and lifestyle habits.
- Riders: Rider benefits are optional additions that improve your plan’s coverage. Some popular rider benefits include an accidental death benefit, a waiver of premium rider, and a critical illness rider.
- Claim Settlement Ratio: Look for an insurance company with a good claim settlement ratio. This indicates the percentage of claims they approve and settle.
Invest in Term Insurance Today!
Term insurance plans are smart investments, and they do not have any variants. The only factor to consider to get its full advantage is that one must purchase an insurance plan from a recognised insurance company such as Canara HSBC Life Insurance.
They provide several types of online insurance plans like iSelect Smart360 Term Plan and YOUNG TERM PLAN, and also allow you to calculate the best premium rates or your tax savings using its online calculators.
Hence, one must have a visit to the user-friendly official website to grab such online insurance benefits today!
