What is a Term Plan with Return?
A term plan with return is an insurance policy which upon receiving the premium amount by the investor provides various benefits of a term plan such as death benefits, life cover, etc. Apart from the death benefit, it also provides the option to recover the premium paid, if you survive the policy tenure.
A term plan with return is ideal for providing financial security to your loved ones, especially if you are the sole bread earner of your family and for someone who is actively looking to save his hard-earned money for future financial requirements.
Why Should Term Plan with Return be on Your Task List in Your Mid-30s
There are various to why you should invest in a term plan with return in your mid-30s. Let us look at a few of the reasons.
1. Return of Premium Benefit
Unlike various other life insurance policies, term plan with return comes with an added advantage of return of premium. This means that if the investor outlives the policy tenure, he does not have to worry about the premium amount as with this benefit, he can have the premium amount back.
2. Tax Benefits
Under Section 80C and 10(10D) of the Income Tax Act, 1961, the premiums you pay for your term plan with return are eligible for tax benefits for up to Rs. 1.5 lakhs annually. However, tax laws are subject to change from time to time.
3. Death Benefits
Term plan with return provides death benefit. Under this, upon an unforeseen demise of the insurer, his family will receive a lumpsum amount of money in the form of death benefit. As a result, your family will not have to face any sort of financial constraint in your absence
4. Financial Security for Your Loved Ones
By mid-30s most of us start our families, therefore it is imperative to be financially secure for uncertain times. With term plan with return, one can set all the financial worries free and be secure in case of any financial constraints. Also, it provides the satisfaction of returns paid in terms of premiums.
What is the Next Step?
Having read this article, you must have understood the importance of term plan and its benefits. By mid-30s, having invested in term plan with return gives you and your family the wings to achieve all your dreams without worrying about finances.