*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply
There is little doubt that Term insurance plans are one of the cheapest and affordable ways of family protection in case the worst happens to any of the members. Due to the implementation of new taxes on insurance policies, premium prices have increased considerably, but still if you compare policies from both public and private sector insurance companies operating in the country, it is still very much possible to find a deal that is both profitable and suitable for your requirements. Here are the top 10 reasons that make investing in online term life insurance an effective choice for Indian investors.
1. It is Cheap
A term insurance plan is always expected to fit well within your affordable budget and it is also the basic and simplest form of life insurance you can buy in India that also offer a return of premium. Policy holders are only required to pay a monthly premium as per their affordability and the insurance company fixes up a death benefit amount depending upon the premium. There are no other strings attached.
2. Tax Free Death Benefit
Term insurance plans like most other different types of life insurance policies offer tax free death benefit to the nominees of the policy holder. As the premiums are paid with money for which you have already paid the tax to the government no further tax is levied upon the benefit amount. But there are some instances that might make it be counted as taxable income.
3. Guaranteed Built in
Whenever you buy an offline or online term life insurance you actually sign an agreement with the company making the insurance company legally liable to make payments post policy maturity. But as a policyholder you still carry the power to change the policy type or even the policy career and you can even drop it off completely without being accountable for paying any penalty amount.
4. Leverage of Cash
Experts often consider high return of premium of term life insurances as a great way of leveraging a considerable amount of cash over a certain duration of time. The benefit that one is entitled to after a policy is matured is a few times more than the total premium paid.
5. Payout in Time
Among all the different types of life insurance plans available in India Compare Term insurance plans are found to be the fastest paying type among all. This is primarily due to the simplicity of the policy and as there is little to debate on for the insurance companies they are obliged to pay up as soon as a claim is made.
6. Living benefits
Apart from the death benefit, most term life insurance plans carry different living benefits too. The living benefit rider plays a prominent role on return of premium of term life insurance policies.
7. Easy access to insurance quotes
In India, the term life insurance industry has become extremely competitive during the last few years and different careers are offering a wide variety of plans and policies and also offering free quotes prospective customers.
8. Look at Your Return
Once you start investing in an online term life insurance policy you know what you will exactly get as a return on your investment. This considerably minimizes the risk factor and makes term life insurance one of the best investment options in India.
9. Take Care of Your Health
Your health is a concern only at the time of applying for the insurance and anything that happens to you afterwards will be covered by the insurance policy.
It is also a major factor as a policy holder becomes capable of converting his existing policy to something else depending upon changing situations but there are certain restriction about the conversion cost, time period and also the converted amount.