Humans are hardwired to do whatever it takes to protect their families and loved ones. We can mountains for our families. But have you ever thought of what would happen if due to some unforeseen circumstances you aren’t with them anymore? The emotional void you leave behind will take some time to get over and you cannot do much about it, but you certainly can make sure that your family does not go through any financial hardship after you, by simply buying a term life insurance.
Out of all the types of policies, term insurance is one of the simplest forms of life insurance, wherein the policyholder pays regular premiums to the insurance company, and in return, the insurance company pays the nominee a pre-decided amount of money in case of the policyholder’s demise. Here are a few reasons why term life insurance should be the first step to secure your future.
Financial security
A term insurance plan secures the future of your family. Be it your spouse, children, or elderly parents, it is like a monetary aid that ensures that they won’t face financial burden after your demise.
Affordability
Investing in your future shouldn’t mean you should live in a financial crisis in the present. A term life insurance plan is one of the most affordable life covers. The premium amounts are minimal which means you get to plan your finances without any trouble.
Tax benefits
Under section 80C of the Income Tax Act, the premiums paid for a term insurance plan are tax-deductible up to a limit of Rs. 1.5 lakh per annum. Also, the death benefits that the beneficiary receives are also tax free.
Additional coverage
By paying a little extra along with your premium, you can alter your term insurance plan to cover additional risks such as hereditary or critical illnesses and accidents. Some insurance coverages also allow to increase policy coverage after a certain time.
Pick a term life insurance plan that suits all your requirements. The ideal coverage to choose while buying one is somewhere in the range of 15 to 20 times your annual household expenses.