What is Term Insurance? How do I get it? If these questions have been bugging you lately, then you are on the right track. Most people who look for Term Insurance are those who want to secure their family from any future uncertainties. This article attempts to answer most of your questions about Term Insurance and help you choose the best insurance policy that meets your requirements.
What is Term Insurance?
Let’s start with the very meaning of Term Insurance. As harsh as it might sound, the truth is that we live in an era where our lives are uncertain, and no one knows what the future has in store for us. It is this very thought that pushes people, especially those who belong to the working class, to secure the future of their family at any cost. Though there are many types of insurance that companies offer, the most basic one that fits every middle-class’s family budget is Term Insurance. The premium paid in Term Insurance is comparatively very minimal and can be afforded by most of us.
Here are the reasons why you must choose Term Insurance over the other types of insurance that are available today.
Lower Premiums: Term Insurance is the most prefered form of insurance among common people who make money on a monthly basis. This is because they get to pay lower premiums as opposed to some other types of insurance.
The Coverage: One thing that separates Term Insurance from other types of insurances is its coverage. Different insurance companies offer different coverages for their customers. So, Insurance coverage can range upto age 70 to 99 nowadays.
Flexibility: Term Insurance offers flexibility in various aspects, making it the go-to option insurance for the people. In terms of payment methods, the customer can either choose between a monthly or an annual one. You also get to add riders to your already existing insurance plan like critical illness riders or an accidental death cover, which will be an addition to your nominal premium.
Tax Benefits: This is probably the most attractive feature of Term Insurance that attracts people. If subscribed to Term Insurance, the insured can avail a deduction of up to Rs 1,50,000 every year under section 80C of the Income Tax Act 1961. To know more about the benefits under Section 80C, click here. The benefits just do not stop there. The death benefit that the nominees get after the death of the insurer is liable to any tax deduction, i.e. it is 100% tax-free.
With the increase in the number of accidents and deaths in this country, it is the perfect time to get Term Insurance and protect the future of those who rely on you. However, one must do proper research before they choose one. I hope this article helps you in making the correct decision of investing in a Term Insurance plan.