Is it Good to Buy Term Insurance Plan in 2024?

What is Term Insurance?

A term insurance plan is a type of life insurance that offers a large amount of life cover at low premiums. These plans provide the nominee with the death benefit in case the policyholder dies during the policy term. The family can use the benefit amount to take care of their financial needs without the family's main breadwinner. Consider buying term insurance online, as you can get special discounts without paying agent commissions. You can use a term insurance calculator to estimate the premiums applicable for the desired life cover. 

*Note: Now that you know what is term insurance, you can buy term plan easily from Policybazaar.

Is Term Insurance Good?

Yes, it is worth buying a term insurance policy, no matter what year it is. Compared to other life insurance products, a term insurance policy is much more beneficial. In case you do not want to get into too many hassles, you can easily buy an online term plan right from your comfort and avail it at a special price.

*Note: To know the premium of the chosen term plan, you can use term life insurance calculator .

What are Term Insurance Benefits?

Let us quickly understand some of the following benefits of buying a term insurance policy:

1. Financial Cover at Low Premiums

   Term insurance plans are available at highly affordable premiums that allow you to secure your loved ones in your absence. It is suggested that you buy term plan early as the premiums will be lower at a younger age.

2. High Sum Assured

   With term insurance plans, you can secure a large life cover at affordable premiums. You can calculate the required life cover for your profile using a human life value calculator. You can also assess your family’s financial needs in your absence by considering your annual income and age.

3. Tax Benefits

   The following sections provide term insurance tax benefits as per the prevailing tax laws:

   • Section 80C: Under this, an individual can easily claim a deduction of up to Rs 1.5 lakh on the premium amount paid towards the plan.

   • Section 80D: This section helps save up to Rs 75,000 on the paid premium towards health-related coverage such as critical illness rider or hospicare rider.

   • Section 10 (10D): In the case of a term life insurance plan, this benefit can be easily claimed during the payout. The complete amount remains tax-exempted.

   *Note: Tax benefit is subject to changes in tax laws.

   *Note: The various term insurance benefits make it possible to buy term plan to protect our loved ones.

Factors to Consider When Buying a Term Insurance Policy

Now, let us quickly understand the following important factors that should be considered before you buy an online term insurance plan:

1. Understand the Coverage Needs

   Before you buy the term insurance policy, it is important to assess the insurance needs of your family and your close ones. This will help to accordingly opt for insurance coverage that will be required in case the policyholder is no more.

2. Determine Policy Tenure

   Now, once you assess the insurance coverage, it is time to determine the tenure, which means up to what age the policy will be needed. You need to make sure that the policy tenure is not too short. You can also opt for a policy term covering you till 99/100 years of age.

3. Right Choice of Add-ons

   You can opt for various riders to enhance the base coverage of the plan at nominal premiums. The most common term insurance riders are critical and terminal illnesses, accidental death and total permanent disability, waiver of premium, and hospicare rider.

4. Look for Claim Settlement Ratio

   You must look for the claim settlement ratio of the insurance company. The claim settlement ratio will give you a fair idea of the efficiency of the insurance company in settling the claims. However, it does not mean that you make it a sole criterion of making your decision.

   *Note: You can buy the best term insurance plan for 1 crore to safeguard your loved ones against life's uncertainties.

   *Note: Compare the best term insurance plan in India using Policybazaar's comparison engine before choosing the right plan.

Wrapping it Up 

A term life insurance policy is an insurance product that offers not just the financial future of your family but also provides tax-saving benefits. You can compare the available plans online and buy the most suitable one in just a few minutes.