Term Life Insurance Policy: Looking for the Best Term Insurance Plans to Secure Your Family

Tough times can knock on the doors at any time. If you want to defend yourself through the unforeseen tough times, you should be well-prepared with a permanent plan to secure the future of your family members. The best gift you can give to your dearest ones is a secured future. And the best term insurance plan is the best pick for you. 

 In case of getting life insurance, insurance experts always recommend taking a term life insurance policy. 

What is term life insurance?

Term Life Insurance Policy is such life insurance, in which the insurance is for a specified period. On the death of the insured during that stipulated period, his family (nominee) receives a large sum of money. The amount received gets fixed at the time of buying the insurance policy. The condition of insurance benefit only on death is called a death benefit. The amount that is fixed from the insurance is called sum assured.

Keep in mind that, the benefit of a term life insurance plan is available only and only if the death of the insured occurs during the term of the insurance policy (in between). After the completion of the term life insurance plan, in case of death of the insured, no Sum Assured will be available.

What are the features of the best term insurance plans?

Some term insurance policies have additional benefits, such as cover for critical illnesses.  This will ensure that if you get any of these predetermined diseases, you can get good treatment without worrying about the cost.

High Cover at Affordable Rates: Get a significant life insurance cover for an affordable premium.  Take a term insurance policy at a young age to reduce your premiums even more.

Option to cover major critical illnesses: Some term insurance policies have additional benefits, such as cover for critical illnesses.  This will ensure that if you get any of these predetermined diseases, you can get good treatment without worrying about the cost.

Piece-in monthly payments and/or lump sum amount: The dependent person/nominee receives a lump sum benefit amount or a regular monthly payment in addition to the lump sum amount.

Optional Disability and Accidental Death Term Plan Benefits: Unforeseen accidents can lead to permanent or temporary disability, and even death.  By adding an optional disability or accidental death rider to your term insurance policy, you can get financial assistance in such situations.

Long-term cover: You can enjoy the benefits of life cover for up to 99 years of age.

Liability Benefit: Under a term policy, your dependents can pay off any of your loans, debts, or liabilities in one go, with the help of a lump sum amount.

Benefits of taking Term Life Insurance Policy

 If you buy a Term Life Insurance Policy, then you will get these advantages-

More security at less cost

The biggest advantage of taking a term life insurance policy is that by depositing very little premium, you can ensure a very large sum assured. And any type of insurance policy (such as endowment plan or moneyback)  On purchasing the plan, you have to pay a higher premium to get the sum assured for that amount.  In conclusion, it is the cheapest insurance plan. Gives a lot of benefits for very little money.

Tax exemption on deposits and claims

You get two types of tax exemptions with a term life insurance plan-

For insurance policies, you get tax exemption under SECTION 80C on the premiums paid.  Under SECTION 80C, tax exemption can be taken on life insurance and some other investments up to Rs 1.50 lakh every year.

On the death of the insured, the sum assured of the insurance claim received by his nominee gets full tax exemption. This exemption is available under section 10(10D) of the Income Tax Act.

Drawbacks of taking Term Life Insurance Policy

With term life insurance, you do not get any other type of benefit other than the death benefit, such as maturity benefit, survival benefit, etc. There are many other types of life insurance policies that offer such additional benefits as well. However, it also takes more money (premium) for this.

Maturity benefit: The benefit of insurance is that, which is available for the survival of the insured, at the end of the policy term. This benefit is not available with term life insurance.  On taking an endowment plan of life insurance, along with death benefit, there is also the benefit of maturity benefit.

Survival Benefit: It is the benefit of insurance, which is available for the survival of the insured, during the term of the insurance policy.  This benefit is also not available with term life insurance. Death benefit + maturity benefit + survival benefit, benefits of all three are available on taking money back policy.

Conclusion 

If anyone in your family (spouse, parents, children, siblings, or and any) depend on your earnings, you may need to take a life insurance plan (Life Insurance Policy). Life insurance can be purchased in many strategies, such as Ulip, Traditional Plan, or Term Insurance Plan.