Top 6 Benefits Of Term Insurance Plan

Unexpected events, risks and financial contingencies are associated with an individual at different stages in life. We have to find out our way amidst that. One of the advisable ways to ensure financial protection amidst these issues is buying a life insurance plan. Insurance companies offer a host of life covers that help policyholders tackle the various contingencies in their lives and ensure a secure financial future for their loved ones and dependents.

In this article, we will discuss what a basic life insurance plan is.

What is Term Insurance?

Term Insurance is the purest or the most basic type of Life Insurance Plan. In Term Insurance, the family will either get a life cover or sum assured in the event of the policyholder's unexpected death during the policy tenure. If the policyholder survives the policy term, no maturity benefit is payable.

However, in the Indian context, Basic Life Insurance Plan refers to Term Insurance Plans.

Features and Benefits of Term Insurance Plans

• Offers pure life cover – If you are the only earning member in the family, your demise can lead to a financial crisis in the family. They may not be able to manage the expenses. In order to secure your family's financial requirements, a life cover as a lump sum amount will be paid to the nominee. However, there is no maturity benefit under Term Insurance.
• Choice of riders – You can extend your Term Insurance benefits by customizing the plan with additional riders like critical illness, disability, accidental death etc. In this case of critical illness or disability, there will be a financially tough situation that the family cannot manage. You can increase the coverage and get paid for the treatment in this case.
• Tax benefit – Premiums paid under Term Insurances qualify for tax deduction according to Section 80C of the Income Tax Act, 1961. The death benefit paid out to the family is tax-exempt under Section 10(10D) of the Act.
• Affordable premium rates – You can purchase Term Insurance at cheaper premium rates when you are young. At a younger age, the extent of you getting prone to diseases are less likely, and you may not have pre-existing ailments. So, the premium will be fixed at a lower rate. You can increase the coverage at different stages in your life, like when you get married and become a parent.
• Pay-Outs – You can choose from flexible payout options so that your loved ones get the sum assured at different stages in life.
• Joint Benefit – There are provisions to include your spouse's life cover as a Joint Term Insurance Plan.

Summing Up

People with no sufficient investments planned for the family, having many debts like home loans, and have huge financial commitments like children's education will have to take the Term Insurance considering the responsibilities they hold.

However, buying such a plan requires you to analyze your financial stability. You have to know your present financial status and the expenses that are bound to occur regularly; going further, you should strategically plan your financial goals.

Based on this understanding, you can make out the best life insurance online to suffice your necessity. Know your financial duties, secure your family and plan your monetary advantages well to lead a peaceful life ahead.

Start exploring the wide variety of term life insurance plans at PNB MetLife.