What are the Benefits of Term Insurance?

Term life insurance is that what people consider leaving behind for their loved ones in case of immediate death or uncertainty. Term insurances have many benefits in today’s times. Even when you are not around, your closed ones should feel financially secure in all cases. Some of the benefits of term insurance are listed as under:

List of Benefits of Term Insurance Plan

Term policy best for short term needs

Term insurance is great for those who have short term needs like those that mature in less than 10 years. There must be some kind of cash value if terms need an expansion of 10 to 15 years. Term insurance is better than any cash value for anyone below 45 years of age if the length of the protection lasts between 10 to 15 years.

Also Read:

Whole life cover

A term insurance policy is good for those who have any kind of financial burden during the sudden demise of a family member. The amount paid to the nominee under term insurance will help the family members to lead the life as they were leading before. However, in case of protection, it is better to cover the whole life insurance until the age of 99 years.

Premiums

Term insurance is considered to be the best as it provides affordable premium rates. As compared to other insurance plans, term insurance is affordable and easy in maintenance. The frequency of the premium is either monthly, half-yearly or annually depending on the choice of the insured.

The benefit to nuclear families

In present times, there are not many people living in joint families. The only support in nuclear families is the earning member. If there is no term insurance, then circumstances might be very hard to handle. Term insurance will deal with the financial burden in a proper manner.

Tax benefits

One can get tax benefits towards premiums paid Under Sec 80C and also premiums paid in case of any severe critical illnesses under Sec 80D of the Income Tax Act, 1961. The lump sum paid by the nominee as the sum assured is also exempted from the rule of taxation under Sec 10(10D).

Accidental benefit

One can add any accidental death benefit rider as an addition in a term insurance plan. This will help in protecting any kind of mishaps.

Also Read: 10 Facts you didn’t know about the Delhi Metro

Why choose term insurance plan?

Term insurance plans should be chosen as accidents and uncertainty can happen at any time. Family members need to be protected. The nominee can choose any plan as per their requirements. One can choose policies depending on the premium that needs to be paid.