10 Benefits Of Term Life Insurance
For each and every one of us, having financial security is crucial. Furthermore, protecting your family’s finances and future usually comes first. And a term insurance policy is the most straightforward approach to providing your family with complete financial security. Benefits from a term insurance plan can vary based on an individual’s insurance needs and financial objectives. When buying term insurance, it can be quite important to comprehend term plans and term insurance benefits.
1. Reasonably Priced Premiums
You can buy quality term life insurance at cost-effective premiums. Payments can be made monthly, quarterly, semi-annually, or annually. Your age, coverage amount, term length, and more affect the premium. Use a term insurance calculator to find the right premium for your desired coverage.
2. Financial Safety
For policyholders, term insurance has a major benefit. It secures your family’s finances if you pass away.
3. Income Replacement
A term insurance policy offers a maturity benefit as a cover amount. This amount supports the policyholder’s income for them and their nominees. It ranges from lakhs to crores, ensuring the family’s future and meeting financial needs. Policyholders can choose to receive this amount in instalments, enhancing income support and securing financial futures. Additionally, the substantial cover aids in estate planning and protects assets for nominees.
4. Whole Life Coverage
Term insurance policies, also referred to as whole life insurance, provide coverage for up to 99 years, providing clients with complete life coverage in theory.
5. Term Insurance Tax Benefit
Buying term life insurance offers an income tax benefit. You can deduct its premiums under Section 80C of the Income Tax Act. Moreover, the maturity amount is tax-free.
6. Accident Insurance Benefit
The accident insurance rider adds coverage to term insurance. You can upgrade your policy to include the Accidental Death Benefit Rider. This ensures financial protection against accidents that may occur.
7. Various Options For Death Benefit Payment
Policyholders have several payout options. They can choose a single payment or receive money daily, monthly, quarterly, or yearly. Additionally, they can combine a lump sum with an income. Alternatively, they might start with a low income that increases over time.
8. Add-Ons & Riders
Term insurance policies offer riders the ability to enhance basic coverage. Adding these riders costs a bit more. For instance, some policies waive future premiums if a policyholder dies or is diagnosed with a serious condition.
9. Coverage For Critical Illness
In the event that a covered critical illness is diagnosed and you have an optional Critical Illness Rider on your term insurance plan, you will be paid a lump sum.
10. Different Types Of Term Insurance
Term insurance comes in a variety of forms, including Level Term Plans, Decreasing Term Plans, Increasing Term Plans, and Term Insurance with Return of Premium.
Term life insurance is affordable, flexible, and offers tax benefits and peace of mind. It is a great choice for financial protection. Its simple, customisable coverage secures your family’s finances if you pass away. By choosing it, you protect your loved ones and meet your financial goals. You can easily purchase, manage and pay your premiums from the comfort of your home using the Aditya Birla Capital App – Your one-stop app for all insurance needs.
