Benefits of a Term Insurance Policy
Term plan benefits provide economic protection for your family in the event of an untimely death. Optional protection for severe diseases is also available. This will keep your family protected for a long time, and the rates are reasonable. let us see some of the benefits of a term insurance policy that are hidden from you.
1. Issuance of the Amount That is Insured
In the event of the policyholder's untimely death, the members of the family will be paid the amount insured. The insured person can choose to receive the entire value in one lump sum, a monthly or yearly income, a combination of lump sum and income, or a growing income at the start of the policy. This will help with financial obligations, as well as household bills and other expenses.
You may require the entire cash that was promised to you in bulk to overcome a situation.
2. It Can be Used for the Treatment of Critical Life-Threatening Illness
One of the term insurance benefits is that they can be used in life-threatening perilous illnesses. If the term insurance plan includes discretionary Critical Illness Coverage, you will receive a collective payment upon detection of any severe illness which is identified by the plan. Therefore, while investing or paying premiums, you should not be worried that you will only receive the money back only once the policy is matured.
Additionally, there is a provision where you can add accidental death benefits to your insurance plan. Not only these, but term insurance also allows you to add coverage against several terminal diseases. In such cases, you will be paid lump-sum amounts when you are diagnosed with such unfortunate problems. Term insurance with maturity benefits is very helpful, but they are not limited to only this.
3. Gaining Better Tax Benefits
There are several term plan tax benefits that come along with term insurance plans. Also, the term insurance premium tax benefits are available under Section 80C, subject to conditions mentioned therein. The lump-sum money received by the policyholder is the sum that was assured/death benefit, generally is likewise tax-free under Section 10 (10D) of the Income Tax Act of 1961.
4. Premiums That Have to be Paid are Affordable
One of the term insurance benefits is that the paid premiums are divided into affordable amounts, which a policyholder can easily pay. Additionally, you can get high returns by paying such a small amount every month. Also, you have the feasibility of choosing the premium payment frequency (monthly, quarterly, or yearly).
Term insurance includes several advantages that might assist you and your family with their financial demands. As a result, purchasing term insurance is the greatest method to protect your family's future.