Benefits of Term Insurance
Term life insurance is a type of life insurance policy in which death benefit is provided to the nominee of the policyholder if the policyholder dies during the policy term. You can financially secure your family members in your absence through a term insurance policy.
Through a term insurance policy, all the financial liabilities and daily expenses of the family are taken care of by the death benefit provided through the term insurance policy in case of your death. You can get a term insurance plan at an affordable premium. It gives you the benefit of maximum coverage at a low premium
There are many benefits of taking a term insurance plan. If you take permission money then you can secure your family members financially through its various benefits.
In general, the benefits available through a term insurance policy are as follows-
- Sum Assured:
In term insurance policy, if the policyholder dies during the policy term, the sum assured is provided as death benefit to the nominee by the policyholder. This death benefit provides maximum coverage tax benefit to the policyholder at the lowest premium. Through this sum assured, the family members of the policyholder can meet their future needs and settle all their liabilities with ease.
- Whole Life Cover:
Different types of term insurance plans are offered in term insurance policy. In this, you are also offered term insurance policy for whole life. Many insurance companies provide you coverage through term insurance for whole life i.e. you can get coverage of life insurance till the age of 99 years through a term insurance plan.
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Term insurance plans offer you a life insurance product at very affordable premiums. For this, you have to pay the minimum premium while the coverage available through it is maximum.
The premium paid in term insurance plans is less as compared to other life insurance plans. A term insurance plan gives you the opportunity to choose your insurance coverage amount. Through this, the policyholder can choose his insurance coverage according to his budget, how much insurance amount his family will get after his death.
- Tax Benefits:
Tax benefits are also provided to the policyholder in term insurance policies. Through this, you are eligible for tax benefits on the premium paid under Section 80C of the Rights Act, 1961 and as per Section 10D of the Income Tax Act, 1961, you are also eligible for tax benefits on the amount received on maturity of the life insurance plan There are
You can get a term insurance policy customized as per your requirement. If you want additional coverage in your term insurance policy, then you can get additional coverage through riders. Also, you can choose a term insurance policy for a fixed period of time. You can customize your premium payment options as per your convenience. Thus a term insurance policy gives you complete opportunity to customize it accordingly.
- Critical Illness Cover:
You can also add critical illness cover to a term insurance plan. Through this, you can take advantage of insurance benefits in case of serious illness. You do not get critical illness cover inbuilt in term insurance plans. You have to add critical illness cover as a rider to it for which you have to pay a little extra premium. But through this critical illness cover, you can avail insurance benefits in case of any critical illness.
- Accidental Death Benefit:
You can also avail accidental death benefit in term insurance plans. You can add this to your term insurance plan through riders. If you die in an accident, then along with the death benefit, the benefit of accidental death benefit is also provided to the person nominated by you.
- Coverage for Terminal Illnesses:
You can also get coverage for terminal diseases (such as AIDS) under term insurance plans. For this, you need to add coverage for terminal illness in the form of a rider. In case of terminal illnesses, a lump sum payment is made to you by the insurance company.
- Return Of Premium Benefits:
In term insurance plans, if the policyholder survives the policy term, then no benefit is provided to him. But now such term insurance plans are also offered by insurance companies in which if the policyholder survives the policy term then all the premiums paid by him are returned after the end of the policy term. Through this you can get back all your paid premiums.
However, you have to pay some additional premium to avail the return of premium benefit, only then you can avail it.
- Maturity Benefits:
You are not given any kind of maturity benefit in term insurance plan. In a term insurance plan, if the policyholder dies during the policy term, only then the insurance benefit is provided to the person nominated by him.
- Riders Benefits:
Term insurance plans provide you the option of teaching the coverage of your term insurance plan by adding multiple riders. You can enhance the coverage of your term insurance plan by adding these riders on payment of additional premium.
In a term insurance plan you get the option of adding the following riders-
- Critical Illness Rider,
- Accidental Death Benefit Rider,
- Accidental Total or Permanent Disability Rider,
- Waiver of premium rider .
- Financial Security:
A term insurance plan is known to be one of the best ways to secure financial security for your family in your absence. With a term insurance policy, you can secure the financial future of your loved ones. Through this, you can enable them to meet the financial needs of your family even in your absence. Thus, through a term insurance policy, you can provide financial security to your family.