What are the Benefits of Term Insurance?
Term insurance plans provide financial security to the family of the beneficiary in case of death of policy holder and also get optional coverage for critical illnesses or accidental death. Affordable premium, life coverage with financial security and income tax benefits is an important feature of term insurance plans.
However, to make the most of term life insurance policy, it is equally important to know in regards to the benefits of term insurance so that with a plethora of insurance companies available in the market you can zero down the policy with the maximum benefits accordingly and buy the best term insurance policy.
Also Read: 10 Questions You Should Ask Before Buying Term Insurance
Following is a list of term insurance benefits that a term insurance provide you:
Let’s talk in brief explanation of above term insurance benefits.
Dedicated Claims Assistance Program
In case of a claim, your family will receive complete assistance & we promise a seamless claims settlement process.
Legal & Emotional Counselling
Legal help in creating death certificate & grief support program for your loved ones
Free Document Pickup
We will help you do all the paperwork, verify it & provide a pick-up facility from your doorstep
Term Plan Benefits -
Whole Life Cover
One of the key term insurance benefits is the whole life cover, which offers comprehensive security wherein the policyholder is covered up to the age of 99 years and more. A term insurance plan helps to reduce the financial burden on the family members’ case the breadwinner passes away.
Term Life Insurance Plans
Easy to Understand
When purchasing a life cover, it is better to take an in-depth understanding of the specified terms that are offered within the term insurance policy. Another term insurance benefit is that it is one of the easiest policies to understand. Moreover, as a term insurance policy is a pure life cover therefore it has no investment component within it. One needs to pay the premium on time and the insurance provides a cover for a fixed duration and provides different term insurance benefits.
High Sum Assured With Affordable Premium
When it comes to a term insurance plan, it is the simplest form of life insurance. The prime term insurance benefit is the pocket-friendly cost. When compared to any other type of insurance policy undoubtedly a term insurance plan is available at affordable premiums. The golden rule for buying the plan the earlier you buy, the lower will be the premium. Likewise, it is better to buy a term insurance policy online as the premiums offered will be low in comparison to buying it offline. Moreover, it is easier and convenient to check term insurance benefits online.
Critical Illness Coverage
Someone might suffer from any critical illness at any stage of life. Moreover, the treatment expenses incurred towards these illnesses could easily exhaust the savings. Though this essential term insurance benefit is life cover, however, one can opt for a critical illness cover, which is mostly available within additional rider options wherein you will not need to pay for the incurred medical expenses and drain the savings. It is recommended to avail this term insurance benefit as you might be healthy now, but nobody knows what will happen tomorrow.
Additional Rider Benefits
In case you are unaware you can strengthen the term insurance policy by opting various additional rider befits options. These additional rider benefits are available and are offered by almost every insurance company in India and one can include it in the policy by paying an additional nominal premium. These term insurance benefits will differ from one insurer to the other.
Payout of Sum Insured
In case the policyholder passes away, the family will obtain the sum assured as the payout. Now, this payout can opt as a lump sum or an income that can either be received on a yearly or monthly basis. This way it helps the family to take care of the everyday expenses and manage it accordingly.
Return of Premium Option
A term insurance policy does not provide any maturity benefit. However, you can avail maturity benefit within the same only when you have opted for the return of premium option wherein you need to pay high premiums that will be returned to you when you have survived the entire policy period. Although, the total amount for the premiums that will be returned will be excluding the taxes, rider premium, any levies and the modal sum that is paid upon the premium. You can also use an online term insurance calculator and take an idea of the estimate with and without the maturity benefits that will help you to make the prudent choice and likewise assess your needs as well.
Multiple Death Benefit Payouts
The breadwinner of the family might be having various liabilities and paying EMIs for the same such as a car loan or a home loan and much more. So when the breadwinner of the family passes away, the liabilities will come on the family. It is here that this term insurance benefit will, play a pivotal role. With the multiple payouts, options the nominee will receive a lump sum amount and then this amount will be used to manage any such liabilities and so that the family lives in peace. One also has the option to obtain income each month alongside the lump sum amount that is the death benefit.
Income Tax Benefits
Last and not the least the term insurance policy also offers tax benefits within two various sections of the Income Tax Act. Within Section 80 C, you can access tax benefit upon the premium that is paid towards the term insurance policy. The premium that paid to the highest limit of Rs 1.5 lakh is eligible for tax exemption. Moreover, within Section 10 (10D) a maturity benefit provided by some of the term insurance plan and with special regards to the TROP that is Term Return of Premium Plan is also tax exempted.