Term insurance has several benefits that help your family build your unfulfilled dreams, even in your absence. Whether it is living expenses, marriage, children's higher education, or clearing your debts, term insurance is the best way to help your family financially even when you're not around by offering enough life cover. These plans offer a high life cover at low premiums, long-term protection, tax savings benefits, and the flexibility to choose the payout option. Let's go deep into the several other benefits of term insurance plans.
Life Cover | Term insurance offers high life cover at affordable premiums. Throughout the policy tenure, if something happens to you, then your family receives a death benefit. |
Regular Payments | With a term insurance plan, you can choose the payment of the premiums mode such as monthly, half-yearly, or annually. |
Life Stage Benefit | A life stage benefit is an ideal feature that helps the policyholder enhance coverage limits later as they progress. |
Choice of Payout | Term insurance allows policyholders to select payout options, such as lump sum, annuity, or regular installments. |
Debt Repayment | Death benefit can be used to pay off the remaining debts of a policyholder. |
Low Entry Age | Term plan comes with a low entry age of just 18, and the premium is also low because the risk to one’s life is low at a young age. |
Maturity Benefits | A term insurance plan with a return of premium offers maturity benefits when you outlive your policy tenure. The insurer offers a return of the sum of all premiums paid throughout the policy term minus GST. |
Optional Riders | Term plans come with add-on riders. It allows policyholders to enhance the base cover by paying an additional premium. |
Tax Benefits | Under Section 80C of the Income Tax Act, you can get a tax deduction of up to ₹1.5 lakhs for the premiums you pay. Under Section 10(10D) of the Income Tax Act, policyholders can claim tax exemption on death benefits and maturity benefits. |
Adjustable Cover | With a term insurance plan, you can increase or decrease your life cover based on your evolving financial needs. It's up to you to choose a higher sum to secure your family even in your absence. |
Special Exit Value | Under the Special exit value, policyholders can withdraw the plan at a specified point in the policy term (free of cost) and receive all premiums paid minus GST. |
Married Woman Property Act | Buying a term plan under the Married Women's Property Act 1874 (MWP Act) helps women by securing the death benefit only for themselves when their spouse dies. It means that no other relative or creditors can claim the death benefit. |
Here are the few benefits of buying a term insurance plan early in life:
Most of us know that the main reason for buying a term insurance plan is financial security, but term insurance has many benefits. You must choose sufficient life cover in a term insurance plan to beat inflation. These plans come with a high life cover at low premiums, tax savings benefits, optional riders, Etc. You can also avail yourself of these term insurance benefits by comparing and buying the most suitable term plan.
Check and compare plans from 21 IRDAI-approved term insurance providers before purchasing a term plan.
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Sahil is a passionate content writer with over two years of expertise in the insurance domain. He uses his knowledge in the field to create engaging content that the customer can relate to and understand. His passion lies in simplifying insurance terminology, ensuring a hassle-free understanding for potential policyholders. With his outstanding collaborative efforts with people, he understands different perspectives and keeps readers' viewpoints at the forefront of his content writing approach.