Raksha Bandhan (Rakhi) is around the corner and if you are looking out for options to gift your sister, a term insurance plan can be the right choice.
Raksha Bandhan is one of the happiest and most joyous festivals in India. It is all about celebrating the beautiful bond of the sister-brother. Sisters tie Rakhi in their brothers’ hands and return, they promise to protect them in the future. There is also an exchange of gifts where traditionally the brother expresses his love to his sister in form of gifts and prayers.
When you think of buying a gift for your sister, you may certainly think of vacation, jewelry, gadgets, or clothes. While all these types of gifts may make her feel very special, you can think of an out-of-the-box gifting option that could be eternal. How about giving your sister financial protection this Rakhi with a term insurance plan?
A term insurance plan is the purest and the simplest form of life insurance. It offers financial protection to your loved ones at the most affordable premium rates. With these plans offered by different types of life insurance companies, you can get a substantial amount of life cover (sum assured) at a comparatively low premium rate. The coverage amount is paid to the beneficiary/nominee in case of the policyholder’s death during the policy term.
This benefit amount ensures that not only the regular expenses of your sister are covered but future expenses such as higher education and the marriage of a child are also covered. So, it is a wise decision to buy a term plan this Rakhi for your sister's brighter future.
Term insurance offers several benefits to its customers. Here are some of them you should be aware of while giving term insurance as a Rakhi Gift:
You can easily get a high life cover amount from a term plan by paying a low premium rate of Rs.449 p.m. Premium payments can also be made either annually/bi-yearly/monthly. The earlier you buy a term insurance plan, the lower the term insurance premiums you have to pay.
Term insurance plans offer longer/whole life coverage i.e., till 99 years of age.
In case of the unforeseen death of the policyholder, the family will get the life cover (sum assured amount) as a payout benefit. The life assured can choose to receive a payout in the form of a lump sum payment, an income paid either yearly or monthly. This ensures daily expenses of family members are fulfilled.
Various term plans also offer critical illness benefits that help you opt for good treatment for life-threatening illnesses without panicking about the expenses. You can buy a term plan with critical illness cover for stated diseases in the policy documents by opting for the critical illness rider benefit.
Accidents can happen anytime and they might lead to permanent or temporary disability. The benefit of disability along with a term plan will provide you with financial help in case of accidental disability.
The sum assured amount offered under a term insurance plan ensures your dependents remain secured from financial liabilities such as loans (home loans) or debt. The loan amount can easily be paid from the payouts received.
Term riders can be attached to the base term plan and it enhances the coverage of the base plan. For instance, waiver of premium waives all the future amount of premium based on T&Cs mentioned in the policy documents.
While the first and foremost reason for purchasing term insurance is to protect the future of your family members, you can also save tax with this plan. You can get tax benefits on the premium amount paid u/s 80C along with the premium amount paid towards critical illness cover u/s 80D.
The lump sum payment received by beneficiaries/nominees as the death payout is also exempted from taxes u/s 10(10D) of the ITA, 1961. Thus, these types of plans can be the right rakhi gifts for sisters.
Consider your life stage, dependents, and financial goals
Determine your current lifestyle needs
Determine your income
Add Riders to your term plan such as critical illness rider, accidental death & disability rider, and waiver of premium rider to enhance the scope of your plan.
Always check the Claim Settlement Ratio (CSR) of the term insurance plan providers. This ratio indicates the credibility and reliability of an insurer.
Let this Raksha Bandhan be all about the well-being and stability of your sister. What can be a more precious Rakhi gift than your financial protection? So, this Rakhi chooses your lifelong protection over gifts to build a stronger and healthier bond with your sibling. So, now send online Rakhi gifts in a couple of minutes.
Happy Raksha Bandhan!!!!!!
Disclaimer: Policybazaar does not endorse, rate, or recommend any particular insurer or insurance product offered by an insurer.
*All savings are provided by the insurer as per the IRDAI-approved insurance plan. Standard T&C Apply
“Tax benefit is subject to changes in tax laws. Standard Terms and Conditions apply.”
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