Life term insurance is essential for individuals who want to protect their family’s financial future. Whether you’re a young professional, a parent with growing responsibilities, or the primary breadwinner, securing a term insurance policy can provide peace of mind. It offers affordable premiums and high coverage, ensuring that your loved ones are financially protected in case of an unforeseen event. If you’re looking for a reliable way to safeguard your family’s future without breaking the bank, life term insurance is an ideal solution.
How Does Life Term Insurance Make for a Value Proposition?
Life term insurance offers a compelling value proposition for many individuals and families. Here’s why:
- It helps financially safeguard your near and dear ones on a budget.
- The premiums for these plans are usually lower than many other life insurance policies.
- You can get comparatively higher coverage for a longer duration without paying excessively high premiums.
- The younger you start, the lower your premiums for larger coverage amounts.
- In case anything happens to you, your family can use the sum assured or death benefit payout to meet various financial requirements such as higher education, household expenditures, repaying loans, and more.
- Term plans offer flexibility. You can select not only the policy tenure and coverage amount but also the frequency of premium payments.
- You can even modify the mode of the sum assured payment, i.e., whether it is a lump sum, monthly income, or a combination of both types.
- Premium payments for term plans qualify for tax deductions under Section 80C up to Rs. 1.5 lakh. Additionally, under Section 10(10D), the death benefit is usually tax-exempt, provided the premium does not exceed 10% of the sum assured.
Get Life Term Insurance Today
Don’t hesitate to choose a term plan for your loved ones’ financial well-being in the future. The earlier you begin, the better it is in terms of securing larger coverage amounts at lower premiums. This is an affordable way to create a financial safety net for your household while also gaining mental peace, which is invaluable.
At the same time, prioritising the selection of coverage is also vital. Choose an amount that will cover not just your family’s basic financial requirements but also other goals, debts, and future needs. Some choose to go for an amount that is 15-20 times their annual income. You can arrive at this by calculating your future obligations and subtracting your current assets and savings to find the net coverage amount. It is advisable to take professional guidance while selecting the coverage amount, tenure, and other aspects.
There is also a return of premium (ROP) option for term plans, where premiums paid are refunded if you survive the policy term. However, this option comes with higher premiums and should be considered carefully based on your future financial requirements.
