With rising inflation, increasing cases of life-threatening diseases, and rapidly changing lifestyles, understanding term insurance is the first step towards smart financial planning. Term insurance is a contract between the insurance company and the insured, where a pre-determined amount is paid to the insured’s family by the insurer in case of untimely demise of the insured. In return, the insured must pay a fixed premium amount regularly.
The best term insurance plan in India can offer adequate financial coverage to your family to face financial obstacles in the future. It is the most basic, budget-friendly, and easy-to-buy life insurance plan to protect your family’s financial future at low premium.
It is a hassle-free and simple process to buy term insurance. The best term insurance plan in India comes with extensive benefits. Here are the top 10 reasons to buy term insurance:
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1. Low Premium
Since a term insurance plan does not have any investment element in the sum insured, the premium for a term plan is lower than other insurance plans. The premium for the term plan also depends on your age. If you buy term insurance early in life, the premium is even lower, and they will not change as you age.
2. Financial Security
An untimely death can be both emotionally and financially distressing for the family. Investing in the best term insurance plan in India can help take care of the family’s financial needs.
Flexibility is one of the most significant benefits of term insurance. You can change and customize your term policy as per your requirements. The premium payments are also flexible. You can choose between monthly, quarterly, half-yearly, or yearly premium payment frequencies. Group term insurance is a popular variant that can be used to cover a group of people.
4. Low Claim Rejection
When you buy term insurance, make sure to provide correct information about your health conditions, finances, habits, etc. According to the Insurance Regulatory and Development Authority of India (IRDAI), the insurance companies cannot claim that there was a non-disclosure of information after two years of purchasing the policy.
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5. Long Term Coverage
The best term insurance plan in India provides long-term coverage. An individual may take a term plan for up to the age of 70. However, some insurance companies may allow you to buy the cover for up to the age of 75.
Riders can also be added to the best term insurance plan in India. Riders refer to the add-ons to a plan that can enhance the coverage of the policy. You may have to pay an extra premium amount to add them. Riders may include accidental death, disability, critical illnesses, etc.
7. Easy to Buy
Buying a term insurance plan is the easiest thing. You can compare the premiums of different term plans to find the one which is suitable for you. The framework is simple and easy to understand. You just have to pay the premiums regularly, and the insurer will cover your life for a fixed period of time. You can even add riders later on as per your convenience.
8. Tax Benefits
You can also avail of tax benefits under the best term insurance plan in India. The premium paid towards a term insurance plan is tax-deductible under section 80C of the Income Tax Act of India. Also, the death benefit is totally exempt under section 10(10D) of the Income Tax Act, 1961.
9. Multiple Pay-out Options
Term insurance plan can help your family manage their regular expenses and financial liabilities in your absence, whether they are EMIs for home, car, or loan instalments. Most insurance companies offer multiple pay-out options. The nominee can choose to receive a lump-sum amount or receive the death benefit as a monthly income. Choosing the monthly or regular income option may be easier for your family to manage expenses.
10. Return of Premium Option
The best term insurance plan in India offers life coverage to the policyholder in the event of the insured person’s untimely demise, but it does not provide any benefit on maturity. However, you can avail of the maturity benefit by choosing the return of premium option. You may be required to higher premiums, but the total premium paid will be returned if you are alive at the time when policy tenure ends.
Term insurance can act as a safety umbrella to secure your family’s financial future. With so many options available in the market, finding the best policy can be difficult. You can consider buying term insurance from Max Life Insurance. The term insurance plans offered by them are affordable and come with extensive benefits.