Majority of people in India are still reluctant to buy life insurance. One of the primary reasons they avoid buying the policy is that they do not understand the product. However, ensuring the financial security of your loved ones is still your responsibility, especially if you are the sole earning member of the family.
If anything were to happen to you in the future, your family would be thrown into a financial turmoil. To prevent it from happening, you can consider buying term insurance.
What is a Term Insurance Plan?
A term insurance plan is one of the basic life insurance coverage available in the market. The product is quite easy to buy and understand. It offers financial protection to your loved ones in case of your death. The policy primarily only provides death benefits, which are availed by the beneficiaries upon the death of the policyholder.
Why Choose A Term Insurance Plan?
The following are the benefits of term insurance plans in India.
- Financial Protection To Your Family – In case of your unfortunate death, the term insurance death benefits will be paid to the beneficiaries of the policy. The primary objective of this policy is to keep the financial future of your loved ones safe, especially in your absence.
- A Basic Life Insurance Product – As explained earlier, term insurance is the most basic life insurance product. It allows you to pay fixed premiums over an agreed term so that it does not feel like an overburden to make payments during any financial crunch.
- Returns – Generally, a true term insurance plan does not offer any returns in case you survive the policy tenure. To make the policy a little flexible, you can buy the ‘return of premium’ cover. With this cover, the insurer will return the premiums paid towards the policy in case you outlive the policy term. The amount received acts as the maturity benefits. Know that your beneficiaries will not receive anything if you survive the policy tenure.
- Riders – Many insurers offer rider covers to enhance the benefits of the term insurance plans. Some of the rider plans that you can choose from are as follows –
- Critical Illness Cover
- Waiver of Premium Cover
- Income Benefit
- Accidental Death Benefit
- Term Insurance Tax Benefits – The premiums paid towards term insurance can be claimed for tax deductions under Section 80C of the Income Tax Act, 1961. If you have taken the return of premium term plan, then the survival benefits are tax-free as well. The death benefits received by the beneficiaries are also tax-free under Section 10(10D).
How To Buy Term Insurance In India?
You can buy term insurance plans in India in two ways.
- Buy term insurance offline
- Buy term insurance online
Buy term insurance offline
Many people still consider buying term insurance plans in-person by visiting the insurer. If you want to buy term insurance via offline means, then get in touch with a trustworthy insurer and visit their nearest branch. Fill out the insurance application form and make the payment. The policy will be issued to you in no time.
Buy term insurance online
We live in the digital era. Most essential and non-essential items are readily available online. Insurance is one such product that can be bought online anytime, anywhere. The online term plan application process is quick, hassle-free, and safe. All you have to do is visit the insurer’s official website and fill in the application form. Make an online payment, and the policy will be issued under your name instantly.
Over To You
A term insurance plan provides a financial security net to your loved ones in your absence. You can enhance the benefits of the term plan by purchasing rider covers. In case you are overwhelmed with the choices available in the market, compared term insurance plans provided by different insurers online. Based on the evaluation, you can then purchase a policy that best suits your needs.
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