The year 2020 has been challenging for all of us for multiple reasons. If there is one thing that stood out amidst all of it, it is the need to protect ourselves better. The need to plan our lives has never been more urgent before. If you are someone responsible for your family members’ well-being, it is essential to have a suitable financial plan for their present and future.
A term insurance plan is a basic form of life insurance that helps create a financial cushion for your family. It is a promise to be there for them through difficult times so that they don’t have to compromise on their life goals after you. It has become exceedingly clear in recent months that life can be too unpredictable. It is in your best interest to assess the contingency plans for your life.
Apart from providing life coverage, other reasons make term insurance a sensible purchase. Let’s discuss the array of benefits that a term insurance plan offers.
- Financial Security
Each of us has some long-term goals that we wish to achieve in life. It is necessary to plan your present well to have a stable future in terms of money. When you invest in term insurance, it helps you manage your finances in the present to prepare for future expenses.
Financial security is of utmost importance as it has a significant impact on every aspect of life. Term insurance assures you of support at affordable rates of premium for an extended period. Hence, it is favorable to invest in a plan at an early age to maximize the advantages.
- Critical Illness Cover
Every individual’s financial profile is different due to several factors such as lifestyle, income source, habits, etc. It is your call to decide the benefits that you require from your insurance plan. Primarily, it is helpful to calculate the adequate coverage you need to fulfill your long-term aspirations.
Most insurance providers offer riders, which can help enhance the coverage of your term insurance plan. A rider is an add-on to your existing policy, which serves a particular purpose. For example, a critical illness rider with term insurance provides coverage against various life-threatening diseases such as cancer, kidney failure, paralysis, and more.
The added feature of a critical illness rider to your term insurance will help avail of certain health insurance benefits. It may be suitable for your requirements as it helps reduce the financial burden of a standalone policy.
- Tax Benefits
There are many reasons to purchase a term insurance plan. Among them, policyholders find the tax benefits associated with them to be particularly persuasive. The Government of India allows some tax deductions on certain kinds of investments and expenses. The premiums you pay towards securing life coverage under term insurance is eligible for such tax deductions.
You can claim tax deductions for term insurance premiums under Section 80C of the Income Tax Act, 1961. Additionally, there are tax exemptions on the compensation that the beneficiary receives upon claiming the term insurance.
The tax liabilities in one’s life can cause financial inconveniences that are disappointing. However, the tax benefits, as crucial as term insurance, can prove to be of great help and relief.
- Peace of Mind
In life, one of the most important things to have is peace of mind. When you are stressed out, it makes everything seem harder than it is. It will make a massive difference in your life to have a sound financial plan. Though we do not have much control over things that may happen in our lifetime, we can certainly prepare for it by doing so.
Investing in term insurance will allow you to enjoy your life with loved ones without worrying about their future. It may be the greatest gift you give to them during your lifetime. Remember to make a cautious term insurance comparison between the policies available in the market to get the best benefits.
Plan Today For Tomorrow
It is never too late to make decisions that affect your life positively. Wherever you may be in terms of life stages, term insurance will undoubtedly make the coming years more comfortable. Every time you make a conscious effort towards improving your loved ones’ lives, it makes a difference in the long-term results of it.
If you act as the breadwinner of your family, there are several responsibilities that you wish to carry out effectively. Term insurance is a financial instrument which ensures that, even in your absence. Many insurance providers in the market can serve your needs well. A careful term insurance comparison will help you create a financial plan that offers a comprehensive solution to all your problems. Take care of the happiness and well-being of your loved ones and invest accordingly.