The mere possibility of your family not being able to fulfill their dreams and aspirations, in your absence, is both frightening and overwhelming. Instead of worrying; however, there’s one thing you can do that would help protect your loved ones and ensure that they don’t have to depend on anyone else, in case anything happens to you. And that decision is to buy a term policy.
Today, major insurance companies offer term plans laden with benefits such as a significant life cover amount, hassle-free claim settlement, low monthly premium and limited premium payment tenure. Many of these plans are surprisingly affordable, despite offering such an ensemble of benefits.
Table of Contents
If you are still not sure about term insurance plans and their effectiveness, here are a few points that will help change your mind.
1. Pay Small to Avail Big Benefit
Term plans are one of the easiest life insurance plans to purchase and maintain. All you need to do is deposit a small amount and be free from worrying about what will happen to your family after you are no more. Moreover, the monthly premium amount is light on the pocket and won’t affect your overall budget. Although the traditional insurance plans don’t offer maturity benefits, they offer a high life cover, which is paid to your nominee after your death. As a result, your family won’t have to compromise on their lifestyle and dreams due to a shortage of finances.
2. Free from Fund Management Charges
There are no fund management charges that are to be incurred by the policyholders, in case of term insurance plans. This is taken care by the insurance company itself, while all you are doing is pay a small monthly premium amount that would provide a substantial amount of money to help your family in the time of need.
3. Fixed Premium Amount
With term insurance plans, there is a fixed amount of premium that you need to pay. Moreover, there are several different modes of payment and time periods that allow you to pay the instalments as per your convenience. In other words, you can choose to pay the instalment either monthly, quarterly, or annually.
4. Online Plans with Lower Distribution Expenses
Compared to the offline life insurance plans, the online investment mode is not only time saving but also helps you save cost. You can make the investment directly through the company’s portal and without consulting an agent or pay commission.
5. Rider Benefits for Policyholder
Perhaps one of the distinctive aspects of a term plan is the presence of additional riders that can be added to the principal plan to increase the benefits of the parent insurance policy. These benefits come in the form of critical illness, disability, and accidental death riders. Overall, the more compressive these additional riders are, better are the policy benefits of the term insurance plan.
Whether you are the sole earner of your family or not, there is an innate sense of responsibility that drives you to protect your loved ones and their dreams at all costs. With a term policy in your investment portfolio, you can help create a corpus for your family in case of an eventuality. Not only this, term insurance plans from reputable insurers such as Max Life Insurance also help reduce your tax liability under Section 80C of the Income Tax Act, 1961.
In addition to significant tax savings, these plans also avail a range of benefits to protect you against critical illnesses, disabilities, and death. Therefore, you need to be proactive and smart about choosing a term plan that would act as a safety net for your loved ones. Look for definitive information on points such as term plan claim settlement ratio, cover amount, premium amount, and coverage period while comparing different policies, and you will never be wrong in making sure your family gets what they truly deserve.