What’s a Pure Term Insurance Plan and Why Should You Invest in One?

Reason Why Should You Invest in Pure Term Insurance Plan?

The Covid-19 pandemic has highlighted the necessity to secure yourself and your family, financially so that there are no financial constraints in the future. People have now realised the importance of securing the future of their loved ones and making arrangements to safeguard their lives even when they’re no longer around. Buying a life insurance policy allows you to do that and acts as a safety net for your family in your absence.

While there are several types of life insurance plans to choose from, a pure term insurance plan is one of the most lucrative options.

What is a Pure Term Insurance Plan?

A pure term insurance plan is a type of insurance policy that provides death benefits to the policyholder’s family in case of their untimely death. The assured amount of cover offered by the pure term insurance plan is high, and this policy is available at convenient premium costs.

The pure term insurance plan premium can be paid at defined intervals such as monthly, quarterly, half-yearly, and yearly. However, this depends on the terms and conditions of the policy. With a pure term insurance plan, your loved ones will be able to live their lives and achieve goals like your child’s education, marriage, health expenses and so on without worrying about financial constraints.

Why Should You Invest in a Pure Term Insurance Plan?

1. A Pure Term Insurance Plan Secures You Financially

A pure term insurance plan secures your family’s monetary requirements in case you are not around. It helps your family achieve goals like child’s education, marriage, health expenses etc. and maintain their lifestyle even in unfavourable circumstances.

These goals vary from person to person, so one should consider the cover they need from their pure term insurance plan.

2. The Pure Term Insurance Plan Can be Bought at Convenient Premiums

Another advantage of buying a pure term insurance plan is that it can be purchased at easy premium rates. The investor receives lucrative cover at convenient premium rate. This makes a pure term insurance plan a popular choice.

3. Income Tax Benefits

The premium you pay for pure term insurance plans is applicable for tax benefits and tax deductions. Under Section 80 (C) of the Income Tax Act 1961, the premiums paid by the investor is tax exempted for up to Rs. 1.5 lakhs in one year. Under Section 10 (10D), in case the insurer dies, the death benefits will then be fully tax exempted. However, these tax laws are subject to change from time to time.

4. Pure Term Insurance Plans has Rider Options.

You can enhance your pure term insurance plan with the help of riders. Such as, you can cover death in case of accidents, using an accidental death rider. Please note that riders are optional and can be incorporated in the plan by paying additional cost.

5. Flexibility to Pay the Premium

Pure term insurance plans offer the policyholder to pay the premium in a flexible manner, i.e., the policyholder can pay the premium on a monthly, quarterly, half-yearly, and yearly basis.

6. Your Assets are Protected

In case of the policyholder’s untimely demise, the family members who are financially dependent on the policyholder may have to sell off the assets in order to arrange funds. With a pure term insurance plan, the need to sell off the assets will not arise, as a result of which your assets will be secured.

Conclusion

There are many insurance providers in the market right now. However, you should choose your insurance provider after doing thorough research and analysis. It is very important for policyholders to go through the various available policies and choose the one that suits your requirements, priorities, and financial health.

Disclaimer:

*Tax benefits are as per the Income Tax Act, 1961, and are subject to any amendments made thereto from time to time
The article is meant to be general and informative in nature and should not be construed as solicitation material. Please read the related product brochures for exclusions, terms and conditions, warranties, etc. carefully before concluding a sale.
Make responsible financial decisions. Consult with your financial advisor before making any decisions on insurance purchase.

Suggested Plans

Bharti AXA Life Flexi Term Pro

  • A Non-linked, Individual, Non-participating Pure Risk Premium Life Insurance Plan
  • Get life insurance cover and flexibility to customize your term insurance plan as per your needs!

Bharti AXA Life Grameen Jeevan Bima Yojana

  • Non-Linked Non-Participating Life Term Micro Insurance Plan
  • Flexibility to opt for two plan options: Pure Protection Plan Option, Protection with Return of Premium Option
  • Flexibility in Policy Term/Premium Payment Terms
  • No medical examination
  • Tax benefits

Bharti AXA Life Premier Protect Plan

  • Flexibility in Policy Term
  • Flexibility in Premium Payment Terms ( Single , Limited, and RegularPay Options)
  • Multiple Death Benefit Payout Option
  • Increase the Sum Assured on important milestones
  • Tax benefits

Get Quote