With the Term Insurance policy: Ensuring a Safe FuturePosted by somesh mane on December 12th, 2018 Life is unpredictable and death is inevitable. No one certainly knows what might happen the next moment. The happy moment can turn out to be the saddest in no time. Same thing was experienced by Mr. Sunil’s family when Sunil, a 32 year software engineer died in fatal road accident. It was an unbearable and irresistible emotional trauma for the family. On a financial front, he was the sole earner of the family. However, his family was not shattered financially as they got the lump sum amount from the insurance company as a death benefit from term insurance he had taken. Crux of the story is – we cannot predict our life, but we can definitely plan to overcome the impact of unpredictability. Term insurance is truly the ideal way to protect against uncertainty of life. What is term insurance policy? Term insurance is a pure form of insurance that provides the life coverage for a defined period of time. The term plans are specifically designed to provide financial security to the insured’s family or loved ones in case of death of the insured. It is a very simple plan to understand. Let’s say you purchase a term plan for 30 years with a coverage of INR.1 crore for which you would be paying certain amount of premium every year. The sum assured of INR. 1 crore will be given to your family only in case of death or uncertainty during the tenure of 30 years. If you survive the 30 years term, nothing will be paid out at the end of the term. Types of term plans Term insurance policies come in various variants to suit diverse requirement of people. Here are the major type of term plans available today.
There are also various riders or add-ons attached to the term plans to enhance the coverage. Riders can be availed at an additional cost of premium. Some of the common riders available in term insurance policies are
Secure your family’s future with term plan Choosing the right term insurance policy with an adequate coverage for an ideal tenure is an important step to secure your family financially. Even though you save for every important milestones of your life, sometime an unexpected situation can screw everything up. Hence, before you start with the financial planning, securing your family’s financial future with an adequate amount of term insurance coverage is very important. Term insurance can secure your family against many financial consequences, such as
Apart from the complete protection it offers to your family’s future, term plan helps you save some tax. Premium paid towards the term insurance policy is eligible for tax deduction under Section 80C of the Income Tax Act. Also, the death benefits are tax free in the hands of the nominee as per Section 10 (10D) of the Income Tax Act. Conclusion In a nutshell, term insurance is the necessary financial decision every earning member of the family should make to ensure the future financial safety of his/her loved ones. Buy them at your early age for higher coverage at a lesser rate. Ensure to choose the right policy as per your insurance need. Insure yourself today to ensure complete protection for your family! Like it? Share it!More by this author |