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What are the Benefits of Term Insurance?

Life Insurance: How big should your life insurance cover be? These factors  will help you decide

Buying term insurance online is a financial decision that helps you extend your support to your family in your absence. It provides them with financial coverage during unforeseen circumstances. When you seek life cover from insurance, the variety of options by companies may confuse you. We are here to make it easier for you by explaining what the benefits of term insurance are.

Term insurance is coverage available in case of an unfortunate event to the insured during the policy term. The insurance company offers an insurance payout to the nominee. Such policies have affordable premiums, which you can even calculate using an online term insurance calculator. As it is said, “the earlier, the better“, the earlier you buy insurance, the lower you pay premiums. Just buy term insurance online and relax, as your family’s financial safety is now secured.

Here are the detailed benefits of term insurance, you should know to make an informed decision:

  1. Covers 99 Years 

Term insurance will cover you for more than 99 birthdays. Just pick the tenure for insurance cover as per your personal needs. The premium will differ for different terms, which you can calculate using the term insurance calculator anytime.

  1. Simple and Methodical

Pay timely premiums of your term insurance to ensure uninterrupted financial security for your family. Now, you can buy term insurance online without any hassle.

  1. High Insurance Coverage

Term insurance gives high insurance coverage but at affordable premium payouts. You pay a nominal premium amount in exchange for high financial coverage that your beneficiary will receive in the future.

  1. Covers Illness and Treatment Costs

Naturally, over time, illness may become inevitable. To protect your savings from getting drained by treatment expenses, you can opt for additional riders. You can amend your existing term insurance plan to include these supplementary coverage options by paying very nominal charges.

  1. Assured Pay-Out to the Nominee

This is the foundational benefit of term insurance. When the insured policyholder passes away within the policy duration, the nominee receives the assured sum of money. They receive it in a lump sum or periodically, as chosen by the insured.

  1. Premium Returns (TROP)

On paying a higher percentage of premium, you can also avail the option for the return of premiums over a certain period when the policy matures. However, tax elements and rider premiums are not included in the payout on maturity. This term insurance benefit is called Term Return of Premium Plan (TROP).

  1. Securing Your Loans and Assets

If you have any unpaid loans to be settled in your absence due to a sudden demise, you can save your family from the burden of paying them off using their personal assets. The high coverage offered by term insurance can help them to get rid of these liabilities with ease. Calculate your premium based on the coverage you need using the online term insurance calculator.

  1. Term Insurance Benefits under Income Tax Act, 1961 

Under the income tax Act, 1961, insurance policyholders paying premiums can enjoy tax benefits against the premiums of up to INR 1,50,000 per annum as deductions from taxable income. These deductions may allow a net tax benefit of 20-30 percent on the ceiling amount as per your taxation slab. So, do check your premiums using the term insurance calculator for your tax planning.

Along with that, you get 100% tax exemptions for the selected term insurance policy’s death benefit payout under Section 10(10D) if the policy paid annually during the term was 10-20% of the total death benefit payout.

  1. Accidental Death Benefit

You can opt for riders as an add-on benefit that might double the payouts during extremely unfortunate mishaps. In such situations, family members are scrambled by the medical expenses and sometimes face the loss of their bread earners. This rider benefit protects them against the hospital’s medical expenses along with the death benefits.

The term insurance benefits can be a saviour for your family in times of misfortune. Buy term insurance online and secure your family’s financial needs. As you have read above, term insurance benefits include higher payout, low premium, longer duration of the policy, accidental protection, along with tax benefits. Hence, wait no longer and buy your suitable term insurance online today. Get an estimate of how the premium suits your budget using an online term insurance calculator.