What is the purpose of term insurance ?
Financial stability of the family : If the policyholder is the family’s sole source of income, purchasing a term plan will ensure the family’s financial security.
Assets Protection : If you have accepted a loan in your presence, it might be a personal loan, a home loan, a vehicle loan, or something else entirely. Debt repayment can be a financial strain on your family.
Critical sickness coverage : Critical illness coverage is available in some term policies. This provides financial protection against life-threatening diseases such as cancer and heart attack, which grow over time as people get older.
Term Insurance’s Advantages
Affordable premium: You can receive high-value life insurance by paying a low monthly, half-yearly, or annual premium. The cheaper the premium, the earlier you purchase a term plan.
Whole life cover: Term insurance covers you for a longer period of time than whole life insurance, which covers you for 99 years.
Critical illness benefit: If you have a critical illness benefit in your term plan, you will receive a lump sum payment if you are diagnosed with it.
Payment of the sum insured: In the event of a policyholder’s death, the sum assured will be paid to the beneficiary. It can come in the form of a lump sum, a monthly income, or annual payment, according to the policyholder’s preferences. This will assist the family in meeting its financial obligations.
Accidental death benefit: An accidental death benefit can be added to your term plan to give financial protection in the case of an accident.
Terminal sickness coverage: The term plan covers terminal illnesses such as AIDS with a lump sum payment.
Tax benefit: You can gain a tax break on premiums paid under Section 80C, and the lump sum received by the nominee as a death benefit is tax-free under Section 80C.