Term insurance plan is a popular type of life cover policy under which you are covered for a specific time period. When you choose the best term insurance plan for yourself, you secure the future of your family. Following are the key benefits that the best term insurance plan provides:
- Higher Coverage at Lower Premiums
The low-cost premium is one of the essential benefits associated with the best term insurance plan. The earlier you take out a term insurance policy, lower would be the premium. Therefore, you will be able to safeguard the future of your family at a lower cost. It is important to note that, with increasing age, the amount of premium will also increase. Therefore, it is recommended to review and take out the best term insurance policy before you turn 40.
- Better Financial Protection
No matter how healthy and balanced your life is, unanticipated things often occur. While you cannot stop them or predict the future, you can certainly take measures to mitigate its implications. Term insurance plan allows you to provide financial security to your family if something wrong happens with you. This is especially important if you are the sole bread earner in your family. By carefully picking out the best term insurance plan, your family can easily manage the expenses without having to compromise on their current lifestyle.
- Harness Tax Benefits
The term insurance plan offers tax benefits that explain its popularity. People always find ways to avoid tax and term plan is one of the effective tax-saving investments. According to Section 80c and Section 10 (10D), when you take out term insurance plan, you are entitled to avail tax benefits. Therefore, investing in term insurance plan allows you to save tax as well as protects your family’s future.
- Higher Flexibility
When it comes to choosing the best term life insurance plan, you get a wide range of options. You have the option of buying annual renewable term life plan, that covers you for one year, or you can choose a short term plan that covers you for five years. Moreover, you can also take out a long-term term insurance plan that covers you for around 10 to 30 years. Therefore, based on your financial structure, you can choose a term life plan that aligns with it.
The Bottom Line
Choosing the best term insurance plan means that you are protecting your family from the unanticipated future. In the event of your death, this policy will cover for the loans and expenses that you had so that your family continues to live peacefully and without financial burden on them. Presently many companies offer term life insurance plan; however, don’t be fooled by marketing tactics. Ensure to read all the terms and conditions associated with a plan, and compare various term insurance plans prior to making a final decision.