Our family is one of the most important aspect of our life. We work hard to build wealth to ensure that they can live a good life and have a stable future. But you never know what will happen in the future. The uncertainties of the future can be daunting, and it is important to protect your loved ones from the harmful implications of the unforeseen incidents.
If something happens to you tomorrow, you must protect your family from bearing the financial burden, especially if you are the sole breadwinner in the family. This is why you should consider taking the best term insurance plan. It is a comprehensive life insurance cover that comes with a wide range of valuable features to provide you with financial freedom and security.
It is smarter to take an online term plan before you are 40 when you are young and healthy. When you are young and free from diseases, you are likely to pay lower premiums as well as opposed to when you take the plan at an older age. As the age increases, so does the premium associated with the term plan. Therefore, it is recommended to get insurance as early as possible.
Additionally, in a basic plan, the premium amount remains the same throughout the tenure. So, you can check and decide the amount that does not put a strain on your existing living expenses. However, the tax elements are subjected to change if there are any modifications in the existing tax laws and regulations by the government.
Along with the lower premium, another USP of term insurance plan is the comprehensive coverage it provides against other types of plans. This term plan allows you to get coverage of up to 80 years. And if you start early, you will enjoy massive coverage while paying a very low premium. If you are taking a term plan in your 30-40s, your coverage should be 20 times our yearly income. This will ensure that during the maturity period, your family gets a sufficient amount to cover all the expenses.
Fixed Premiums, Fewer Uncertainties
Once you invest in a term policy, the premium you pay remains the same throughout its duration. Therefore, buying it means that you get to save a lot of money over the course of time. For example, if you take term insurance coverage for Rs 1 crore while you are in your 20s, the premium you pay yearly would be around Rs 6,000 to 8,000. If you take the same policy when you are in your 40s, the premium amount will go beyond Rs 15,000, depending on your health.
Leverage the Tax Benefits
The premium you pay for a term insurance plan is considered a tax-saving investment. When you buy a term plan, you get to avail multiple tax benefits under:
- Section 80D: This exemption is provided on the premium you pay towards coverage associated with health, such as critical illness riders. You can claim up to Rs 25,000 deduction towards the premium you pay.
- Section 80C: In this, you can claim benefits for the premium that you pay towards the policy. This section offers the biggest deduction as you get to claim up to Rs. 1.5 lakh.
- Section 10(10D): This allows the nominee to claim tax benefits for the insurance sum in case of the policyholder’s demise. The overall amount is entirely exempted from taxes.
Generally, term insurance plans provide additional benefits called riders in addition to the death cover. At a little extra premium, you can take riders to enjoy the maximum benefits of your policy without burning a hole in the pocket. These riders include accidental death benefits, critical illness benefits, waiver of premium rider, income benefit rider, etc.
Read More: 5 Top Tips For Your Life Insurance Policy
While you cannot predict or protect what will happen to you in the future, you can certainly ensure that your family does not have to bear its harmful implication in financial terms. Buying life insurance coverage is the best way to gain financial security and freedom. And, the term insurance plan is among the most effective forms of insurance. Whether it is higher coverage, low premium, or overall stability, this insurance place offers you peace of mind and financial freedom.