Term Insurance- Life of a person doesn’t come with any defined expiry date. I sometimes wonder, it would be amazing if my life could have a defined expiry date like those of bakery breads. Every person has particular aim to achieve and responsibilities to stand for. For your every next move you should be secure about you life first. Term plans are the best ideas on which you can rely. Term plan is a good defence plan.
Life is too short and one can never predict the future. To make sure that your family is financially secure even after you are gone, you must opt for a term insurance. A term plan helps you to get prepared for such uncertainties. Term life insurance or term assurance is a kind of life insurance. It provides coverage at a fixed rate of payments for a defined limited period of time.
Now we are going to discuss the benefits of Term-Insurance.
Low Premium
In term insurance there is no investment elements in the insured amount which makes the premium of term insurance less than other insurance plan. Anyone can pay only 1% of this income to get a life cover. Just because of low premium it is easy for, not so financially stable person even to secure future of families.
Highly flexible
Term life policies are “renewable” and “convertible”. It assures you can go to another term policy plan at the end of the first term policy if you leave that scheme in between and stop paying for it. Flexibility is one of the major good factor of term insurance. You can select any plan online or offline according to you preference. In fact, you can also customize your previous plan.
No broker fees charged
Normally broker fees is charged which makes the plan very costly. When ever you pay the premium, a certain percentage of that payment is driven towards the brokerage charges. This thing makes highly cost effective scheme. often, brokerage charges account for approximately 5 to 6 percent of the total premium payment. But if you buy a term plan online, often no brokerage charges are implied in it. Term insurance allows you to avoid the charges of the broker fees which make the deal more effective and cost friendly.
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Tax benefits
As per Section 80 C, life insurance premium up to Rs. 1,50,000 is exempted from taxable income annually. This includes premium paid for spouse and additionally kids. However, if the premium paid exceeds 10% of the sum assured, the benefit will be limited only up to 10%.
Under Section 10 (10 D)
According to section 10 (10 D), you can also save tax on the returns. Because the death benefit is completely absolved (tax-free) under the provisions of this section. This exclusion is given to the nominees and can come without any upper limitation.
In conclusion it is clearly driven that Term insurance is the best defense plan. It is noted and proven to be beneficial for you as well as your family. If you want to know more benefits of Term insurance, simple drop a message in comment section below.
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