Top reasons why one should invest in a Term Life Insurance Plan
Nobody can ever predict how their life will turn out. You might get the job offer you’ve been hoping for years, or youmight win the jackpot tomorrow. You might want to start your own business or make sure your children never struggle to achieve any of their goals. You only need to do one easy thing—invest in insurance—to help you achieve all of your financial objectives.
If you are unsure whether a term life insurance plan is the best option for you, here are just some reasons why purchasing a quality policy will meet all of your demands.
- Easily affordable
The most fundamental and straightforward type of life insurance you may purchase in India that also offers a return of premium is a term insurance plan, which is always expected to fit well within your cheap budget. Only a monthly premium that is affordable for the policyholder is necessary, and the insurance provider determines the death benefit amount based on the premium. There aren’t any additional restrictions.
- Tax-Free Death Benefit
Like the majority of other types of life insurance policies, term insurance plans provide tax-free death benefits to the nominees of the policyholder. There is no additional tax imposed on the benefit amount because the premiums are paid using money that has already been taxed and paid to the government. However, there are specific circumstances in which it might be considered taxable income.
- A Built-in Guarantee
You enter into a contract with the company whenever you purchase term life insurance, whether it be offline or online. This contract holds the insurance provider accountable for payments made when the policy matures. However, as a policyholder, you still have the authority to alter the kind or even the course of your insurance, and you are free to entirely cancel it without incurring any penalties.
- Cash Leverage
Experts frequently view a term life insurance plan with a high return on premium as a wonderful way to leverage a sizable sum of money over a period of time. After a policy matures, a person is entitled to benefits that are several times greater than the sum of the premiums paid.
- Payout on Schedule
Term insurance plans were discovered to be the fastest-paying form of all the many types of term life insurance plan offered in India. This is mainly because the policy is straightforward and there isn’t much to argue over for the insurance companies, so they have to pay out as soon as a claim is made.
- Benefits of living
The majority of term life insurance plans also offer various living benefits in addition to the death payout. A significant factor in the return of premium for term life insurance policies is the living benefit rider.
- Quickly obtain insurance quotes
The term life insurance plan market in India has grown increasingly competitive over the past few years, and several companies are now offering a wide range of plans and policies as well as free estimates to potential clients.
- Examine your return
As soon as you begin investing in a term life insurance policy online, you will be able to calculate your exact return on investment. Term life insurance has become one of the greatest investment possibilities in India as a result of the risk element being significantly reduced.
- Maintaining Your Health
Only when you apply for insurance is your health a worry; anything that occurs to you after that time is covered by the insurance policy.