Life is pretty unpredictable and that is one of the bitter truths you can’t deny. One unfortunate event can turn yours and your family’s life upside down. Therefore, a step towards handling such events way back in time is important. In case you are wondering what you can do, we have the answer.
Get a term insurance policy and ensure your family so they don’t have to panic in such difficult times. We will talk about term insurance and let you know why term insurance is a smart investment option for most of you.
What Is Term Insurance?
Term insurance is a form of life insurance that provides you with an assured sum of money against the appropriate premiums you pay. A sum assured has a fixed premium that needs to be paid for a fixed term. The main agenda of term insurance is to keep your family financially secure in case there is an untimely death. If the insured faces an untimely death during the term, a death benefit is transferred to the nominee. Here is a list of 10 reasons to understand why term life insurance is a smart investment?
10 Reasons Why?
As we mentioned previously, term insurance is sure a smart investment for someone who is looking forward to financially secure his family in his absence. Here are the top 10 reasons for it.
Premiums are low
Your age makes a big difference to the premiums you pay. Therefore, if you apply for term insurance early in life, you get the maximum benefit for a lower premium.
Security against untimely death
Term insurance in India is a smart investment because it can easily cover you during an untimely death or accident. It can provide the family with the required funds in the form of death benefits.
Covers your dependents early
Term insurance premiums can keep your loved ones away from financial hardships after you. A financial death benefit can help your family bring back their life track without facing ant hardships.
Helps in achieving long term goals
Term insurance can also help you in long-term financial planning. With a term life insurance, you can build a corpus that you can use in different ways. You can also plan a long-term, secure, andstress-free retirement life.
Enjoy tax benefits
Term insurances help you save your taxes in the form of deductions. Also, the final claim that you get is completely tax-exempted. This means you not only invest money for the good but also save a big chunk of your hard-earned money.
Flexibility in terms
A flexible term plan can help you reap many benefits and use the policy to your potential. Depending on the time, your family requirements, pre-existing diseases and so on, you can get the term life insurance tailor-made for the insured and riders.
Solid financial planning
Paying term insurance premiums early in life means that you understand the importance of financial planning. You cover and ensure financial safety and security of your family for an unfortunate event that might happen in the future. It is a smart investment since it ensures your future is hassle-free.
You can supplement your term insurance with different rider policies to further improve the coverage and also get extra perks when in need. You can have a critical illness rider, partial disability rider and so on.
Acts as an income
If you are the sole breadwinner of your family, you might know how difficult it is to cope-up with financial problems alone. However, if you don’t want your dependants to go through the same situation, a term life insurance can help you well. The death benefit can act as an income replacement in your absence.
Disciplines you to save money
Your term insurance premiums need to be paid quarterly, half-yearly, or yearly. This will enable the insurer to bring a sense of discipline that will ensure regular premium payments.
Term insurance is not the only way to earn death benefits but a smart way to do so. There are many other cumulative benefits that you get to enjoy as an insurer or breadwinner. Plus, it helps you reduce the financial hardships your family might face in your absence.