5 reasons why you must-have a Term Insurance

Term insurance is one of the most popular ways for people to provide a safety net for their families in times of need. At a fixed premium, term insurance guarantees a certain amount of money to your family if you unexpectedly pass away within the period covered by the insurance. Let’s look at the 5 reasons you should buy term life insurance:

1. Life is uncertain: Intelligent financial planning requires that you are financially secure, in both sickness and in health. Term insurance is how you protect your family from financial turbulence at a time of crisis. Losing a loved one is painful enough. In such times, a term insurance plan makes sure that the focus stays on emotional healing, and not on cutting corners to afford essential goods and services. This is why it’s critical to stay prepared.
   
   
2. Tailored to your needs: In today’s day and age, insurance policies are getting personalized. In addition to the base insurance policy, additional provisions known as riders are also offered to customers. At slightly higher premiums, you can add features that provide your family with enhanced coverage in certain cases. With an accidental death benefit rider, your family can avail additional benefits if your demise is due to an accident. The critical illness rider lets you liquidate a part of your insurance before your death to pay for medical bills.
   
   Insurance schemes are also becoming increasingly sensitive to the needs of different people. For instance, you can buy increasing insurance, where you pay lower premiums at the start of your plan. This is usually the period in people’s lives when expenses are the highest. Increasing insurance policies allows people to start off with lower premiums and catch up later.
   
   
3. Decreases your tax burden: The money paid as premiums can be deducted from your income when calculating your income tax. This may put you in a lower bracket and decrease your tax burden. It can potentially erase your tax burden entirely - you can claim a tax deduction up to Rs. 1.5 lakhs under the Income Tax Act of 1961. Under Section 80C and Section 10(10D) of the Income Tax Act, you can avail tax deductions not only on the annual premiums you pay towards your policy but also on the payout you receive from your insurance provider.
   
   
4. Effortless Access: Endless paperwork can be very off-putting for most people. Today, you can apply for, and receive, term insurance online. You can also compare and contrast different insurance policies easily. Everything from the exact premium you will need to pay to the exact benefits your loved ones will receive is clearly stated. All the information that took time and effort to get before is now available with a single click.
   
   
5. It’s a good bargain: Term insurance is comparatively cheaper than whole life insurance. With whole life insurance, you build up a cash reserve that will one day be handed over to a selected beneficiary. With term insurance, your goal is different. You are ensuring that your dependents will be taken care of in case you pass away at a time when they are at their most vulnerable. When you are 65 years old, your kids may not need a safety net. But when you are 45 years old, they would. You can buy the term insurance that specifically covers such years of your life. 

To know more about the various Term Plans on offer, you can go through the PNB MetLife websites. At affordable premiums, you can have the assurance that your family will be taken care of if the worst comes to pass. 

The income tax is levied on all earning individuals who fall under a taxable income bracket. The income tax is paid to the Government of India and is charged annually. However, there are several tax deductions and exemptions that you can claim to lower your tax liability. The Income Tax Calculator helps you ascertain your tax output for a financial year based on your taxable income. This can help you plan well and save tax using the tax-saving deductions and
exemptions, if possible. 

SOURCES:
[1]: https://journalistsresource.org/studies/society/public-health/global-rise-human-infectious-disease-outbreaks/
[2]: https://www.iii.org/article/what-are-different-types-term-life-insurance-policies
[3]: https://www.investopedia.com/terms/r/rider.asp
[4]: https://www.livemint.com/money/personal-finance/insurance-penetration-in-india-at-3-69-one-of-the-lowest-across-the-world-1550491451271.html