What is One Year Term Plan?
One year term plan is one of the best investment options that you can go for. The premiums paid by the investor are available at the most affordable rates and in return, the investor can get a lump sum amount of life cover. It is an ideal investment plan to secure your loved ones financially in your absence. The policy tenure is of one year only, which offers you the sense of flexibility to renew it every year as per your requirement.
Benefits of One Year Term Plan for Youngsters
There are various benefits of a term plan which makes it the best investment option.
1. Affordable Premium
The premiums paid by the investor for the term insurance plan are available at affordable rates compared to other life insurance policies, making it one of the best investment options to invest in.
2. Minimum Age for Entry
The minimum age requires to invest in a one-year term plan is of 18 years. Moreover, the early you invest in a one-year term plan, the more beneficial it is, as the premiums are much cheaper and more affordable at an early age, than when you pay the premiums at a later age. As a result, it is recommended for youngsters to start investing in the one-year term plan to enjoy the benefits for a more extended period of time.
3. Rider Benefits
A one-year term plan is one of the best investment options because it provides rider benefits. Instead of buying an additional policy altogether, you can opt for rider benefits such as critical illness, accidental death, etc. However, riders are not mandatory and are available at additional cost.
4. Tax Benefits
One year term plan also offers tax benefits. In this case, the premiums paid by the investor are eligible for tax saving benefits under Section 80C of the Income Tax Act, 1961. As a result, youngsters can enjoy tax benefits for a more extended period than investing later in life. However, tax benefits are subject to change from time to time.
5. Death Benefits
In an unfortunate event such as the investor's death, the family will receive a lump sum amount as death benefits. As a result, the family will not have to face any financial constraints.
Since, the policy tenure is only of one year, you have the flexibility to renew it every year like an annual subscription.
One year term plan is one of the best investment options that one can invest in for securing their future as soon as possible. Moreover, it is recommended for youngsters more, as having invested in an early stage of life lets you enjoy the benefits for a longer period of time. Moreover, a one-year term plan provides you with financial security and lets you achieve your dreams and goals without any worry.