Managing finances in an efficient way is one of the most important responsibilities that come with being an adult. Not only does one need to ensure efficiency to fulfil today’s financial needs, but keeping in mind your and your family’s future financial needs is also necessary. With the rising costs of pretty much everything, thinking ahead and planning for your future becomes crucial. While this may sound like a difficult deal, it can be easily managed by investing in a life insurance policy.
A life insurance policy basically acts as a financial shield for your family in case of your untimely death. Situations like these can be very hard on families, especially if they’re dealing with the death of a bread earner, so taking this step to ensure they will not struggle is a very smart decision. In many cases, a life insurance policy also offers maturity benefits if the policyholder survives the policy tenure. There are many benefits of term life insurance, and here are some of them:
- Affordable: There seems to be an unrealistic notion in the minds of people that say life insurance is extremely expensive, which makes many wary of investing in one. However, while this may be true for a few, term life insurance is known to be one of the most affordable options. You can decide on a sum assured amount and pay small premium amounts for the same. Eg. Coverage of ₹1 crore at a premium cost of ₹441 per month.
- Multiple Payout Options: In case of unprecedented death, it is likely that your family is left with a lot of debts, loans, mortgages, etc., to pay off. Keeping such a situation in mind, they can choose to either receive a one-time lump sum payout or go with a lump sum payment alongside small payments at regular intervals.
- Additional Riders: No one plan is fit to accommodate everyone’s needs, which is why riders can be used to customise any life insurance policy to maximise its usage for you. These additional riders include a death benefit, waiver of premium, disability support, permanent dismemberment and many more. It would help to take a look at the riders your chosen company offers before finalising anything.
- Critical Illness Cover: Medical costs are currently one of the highest anyone is required to face. Life insurance policy can also cover critical illnesses and pay any hospitalisation bills, aftercare costs, surgery bills, etc. This includes different critical illnesses like cardiac arrest, cancer, kidney failure and more such diseases.
- Tax Benefits: Term insurance provides certain tax benefits that can also include exemption from certain taxes as is stated under the current tax laws. Under Section 80C, your term insurance premiums are exempt from deductible taxes upto ₹1.5 lakh. Also, under Section 10(10D), the death benefit of your term insurance plan is fully exempt.
These benefits are extremely helpful to ensure long term financial stability. Invest in a term life insurance policy from one of India’s leading insurance companies, ICICI and prepare for a financially secure future!
