The Coronavirus (COVID-19) pandemic has taken several lives all over the world. Besides this, it has hampered the health of millions of people. It has also impacted the finances of numerous people, and no one knows when it will end.
The onset of this deadly virus has made many people think about financial planning and investing in the right insurance plan. The need and demand for insurance products have grown significantly, and term insurance is certainly no exception!
A term plan is one of the most sought-after insurance policies because it offers a high sum assured at a pocket-friendly premium. Besides this, term plans offer various other benefits. The term insurance age limit for investing in a policy is capped between the age group of 18-65. You can buy a term plan until the age of 65. Here, you can secure your life until the age of 99. If you wonder why term insurance is a crucial part of financial planning, here some of its plus points:
- Financial backup
The untimely demise, especially of a sole breadwinner of a family, can create financial havoc. If you do not want your family to face an economic crisis during your absence, it is advisable to invest in a term plan at the earliest. As a term plan offer an adequate sum assured, you can rest assured that your family members are financially protected even if you are not with them. It will ensure that your loved ones stay economically independent and meet their life goals without worrying about money.
- Monetary security
You may have availed of financial assistance in the form of loans to accomplish your aspirations. For instance, you may have to pay Equated Monthly Installments (EMIs) for a house loan, car loan, and personal loan. In the case of your untimely absence, the burden of the debt will fall on your family. If you have a term plan, the sum assured can cover your debt and provide the much-needed financial safety to your family.
- Tax deductions
Another benefit of a term policy is that it offers tax exemptions. You are eligible to claim a maximum tax deduction of INR 1.5 lakh per year towards the premium that you pay for the term plan as per Section 80C of the Income Tax Act, 1961. Additionally, according to Section 10(10D) of the same Act, the death benefit received by the policy’s nominee is tax-free.
- Peace of mind
If you invest in an appropriate term plan, you can lead a peaceful life. You need not live like a miser to save money for your loved ones. You just have to purchase a suitable policy.
- Flexibility of paying premiums
The premium of online term insurance is considerably lower compared to the term plans purchased through an insurance agent. You also get the choice of paying your premiums in monthly, quarterly, semi-annually, or yearly installments depending on your cash flows.
Term insurance offers various riders that you can invest in based on your needs and enhance your policy’s scope. If you consider buying any rider, you will have to shell out a bit more over your premium. However, purchasing them can prove handy. You can opt for riders like critical illness rider, accidental death benefit rider, waiver of premium rider, and income benefit rider, among others.
It does not matter if you have a high-paying job or you are earning a modest income. It is recommended that you invest in an online term insurance policy, as it is quite affordable. By doing this, you are safeguarding your family’s financial future and providing for them even during your absence.