Planning for the coming years is as essential as earning today. Not being prepared in advance for future uncertainties can often take a toll on you and your loved ones. Even if you are earning and healthy, it is still necessary to be financially prepared as you never know what’s coming. Investing in a term insurance plan has become a crucial step for your and your family’s financial security. It ensures that you and your family are secure even in challenging times and can continue with your lives without having to have any financial hardships.
Some of us still wonder why investing in a term insurance policy is a must today. That is why we have prepared a guide which will tell you about 7 reasons why investing in a term life insurance policy is necessary for today’s time.
7 Points Why Term Insurance Is Must Today
1. Financial Security
Having a financial backup in today’s time is important. Investing in term insurance provides you and your family with financial security and ensures that you are able to achieve all your goals and dreams without any hassle. This policy provides our family with a large life cover in case something happens to us.
2. Tax Benefits
Another key reason why you need to invest in a term insurance plan is the tax benefits. The premiums we pay for the policy are eligible for tax benefits under Section 80C of the Income Tax Act, 1961. You can claim up to Rs. 1.5 lakhs of tax benefits in one financial year. However, tax laws are subject to change from time to time.
3. Secures Your Assets
You might face an unforeseen financial emergency that may result in you taking a loan. In case of an unforeseen and unfortunate event, such as the policyholder’s untimely demise, the financial burden of paying off the loan might fall upon the policyholder’s family. In such cases, the family might have to pay off the loan against the valuable assets, such as a car or your house, etc. Term insurance ensures that your family does not face any inconvenience when they pay off the loan and also secures your assets.
4. Peace of Mind
The term insurance policy gives us peace of mind. God forbid, if something happens to us, we will be ensured that our family’s financial needs will be taken care of even if we are not there to provide to them.
5. Helps Fight Inflation
The cost of living has touched the sky in the past couple of years. Getting our children educated and married or paying for medical treatment can multiply by a few times in the coming years due to rising inflation. Moreover, we never know what is coming for us in future. That is why it is necessary to have a financial backup ready. Investing in a term insurance policy helps us fight inflation and ensures that we have a financial net in case of a rising cost of living.
6. Provision of Additional Rider Benefits
Investing in multiple term insurance plans to avail larger cover and additional benefits can be confusing and inconvenient for the policyholder. A term insurance plan offers the policyholder with additional rider benefits. As a result, the policyholder can avail larger cover and additional benefits under one policy. The policyholder can choose from various rider benefits, such as waiver of premium rider benefit, critical illness rider benefit, accidental death rider benefit, etc. Please note that riders are not mandatory and are available at an additional cost.
7. Affordable Premiums
Term insurance policy offers affordable premium rates compared to other insurance policies and provides high returns as well. As a result, anyone and everyone can invest in a term insurance policy without thinking twice.
The points mentioned above have made investing in a term insurance plan important for both you and your family. While you invest in a term insurance plan, going for a leading and trusted insurance provider.