Why you should buy Term Insurance?

Introduction

Term insurance is an ideal solution to provide protection for your family, children, and loved ones from the risks of untimely death. It is one of the most flexible types of life insurance policies because you can choose the tenure according to your needs and budget. You can buy term insurance online at any point in time and it will only take a few minutes to complete the process of purchasing one. There are many reasons why you should buy term insurance – do not leave your loved ones unprotected!

Term Insurance

Term insurance is a pure insurance policy that offers protection during a specified period. It does not cover you for the rest of your life and hence, it has been given this name. The major advantage of buying term insurance is that it covers you only for a specified period of time, which can be as short as 1 year or as long as 30 years.

However, there are several disadvantages associated with buying term insurance policies too:

• You cannot claim any extra benefits like critical illness or permanent disability if you get terminally ill during the coverage period;
• In case you lose your job and become unemployed for more than 180 days within 2 years after purchasing policy, then also there will be no benefit claims from such policies even if they have completed their terms;

High Sum assured

Term Insurance offers a high sum assured at affordable premium rates and hence, it is ideal for high earners as well as people who have dependents.

It offers coverage on the amount of your life insurance policy and in case of death, the insurer will pay the beneficiary an amount that is equal to or more than your cover amount. Usually, a term plan has an annual premium which may decrease over time.

Term plans are usually available for 10-20 years and after this period expires, it becomes void automatically unless it is extended by paying additional premiums or getting loans from banks.

Protect your family

You can buy term insurance online, in your own name, in the name of your spouse in the name of your children or parents. You might have bought a few policies over the years (term or otherwise) but if you have not bought a recent policy then it is time to revisit that aspect of your life.

Tax benefits

The tax benefits on premiums paid and maturity proceeds received under Term Life Insurance Plans can create an additional source of savings for you.

• Premiums paid: Under Section 80C of the Income Tax Act, 1961, a maximum deduction of Rs 1 lakh is allowed on premium payments made towards life insurance policies purchased after 01/04/2018. Earlier, the limit was Rs 30,000 per annum. This means that if your annual income is Rs 8 lakhs or less (it may vary depending on your age), you can take advantage of this benefit by investing up to Rs 1 lakh in a single year towards the purchase of a life cover policy (with premiums paid) if you don’t have any other insurance plans already in place.

After paying taxes, whatever amount remains after making provisions for final expenses such as funeral costs etc., will go directly into your bank account without being taxed at all! The best part – it doesn’t matter whether or not you actually use those assets during retirement; just having them will save you from paying taxes once again when they mature (in case there are no heirs).

Financial Risks.

When you are young, you are in the prime of your career and most likely earning significantly more than when you were at an older age. This is a good time to buy term insurance as it provides coverage for a fixed tenure. It comes in handy to provide protection during your working years when you are most prone to financial risks such as death, disability, and critical illness. As long as the premium is paid regularly and on time, the policy will pay out upon maturity regardless of whether the insured dies or becomes disabled before this date.

Having said that, there are certain conditions under which insurers can refuse to pay out if they find that there was fraud involved or if the insured was aware of any pre-existing medical condition (other than those specified) prior to buying the policy. In order for a claim not to be rejected by an insurer due to these reasons or any other invalid reason (like suicide within two years after buying insurance), it is important that one should always tell their agent about all health problems while applying for one’s first life insurance policy so that no questions arise later on regarding its validity if something happens unexpectedly without any reason whatsoever.”

You can buy Term Insurance online and it will only take a few minutes to complete the process of purchasing one. You will not have any hidden charges or additional costs as there are no agents involved in the purchase of Term Insurance.

Online purchasing is available 24/7, so you don’t have to worry about missing out on your preferred time for purchasing term insurance because it is accessible all the time at your convenience. You can also select your own language and currency for completing this transaction which is another benefit of buying term insurance from an agent or broker.

Why buy Insurance?

There are many reasons to buy term insurance – do not leave your loved ones unprotected!

• Term insurance is the purest form of insurance. It provides cover against the loss of life and income in case of death or permanent disability (injury) during the term of the policy.
• Tax savings can be availed on premiums paid under this plan depending upon your tax slab as well as other benefits that you may get if you have taken a medical assessment done at an authorized center and found to be healthy, then you need not pay any more premium for 10 years from when you take a loan against your policy for home loan purposes. This would save about Rs 150 per month on a yearly basis on an amount assured close to 1 crore (Rs 10 million) which amounts up to approximately Rs 1 lakhs annually saved if there is no change in premiums after 10 years from today’s date at which point one must renew their policy if they wish so otherwise, it will lapse automatically after 10 years from today’s date at which point one must renew their policy if they wish so otherwise, it will lapse automatically after that time period

Conclusion

The decision to buy term life insurance will not only protect you from financial risks but also ensure that your family doesn’t suffer in case of your untimely demise. It is an investment worth making as it can help you secure the future of your loved ones and make sure that they are financially secure even in case something happens to you. So, if you want an easy way out then Term Insurance is the best option for you!