Is Term Insurance Worth it in 2025?

What is Term Insurance? 

Term insurance is a life insurance plan specifically designed to provide financial protection to your family members in case of an unforeseen event. It offers a high sum assured (life cover) at affordable premiums and ensures that your family remains secure financially even in your absence. Term plans provide life cover without an investment component. 

Many people often wonder, "Is term insurance a good choice?" The answer depends on your financial objectives. If your main goal is to protect your family's future from life's uncertainties, term insurance can be a smart option. It ensures that your loved ones receive a lump sum payout in the event of your untimely demise, helping them cover expenses, repay loans, and manage daily living costs.

Is it Good to Buy Term Insurance? 

The answer to buying term insurance is good is Yes. Buying a term life insurance plan is an important financial decision. It helps you secure a stable future for yourself and your family. In the unfortunate event of the life assured's death, the plan offers financial protection to the nominee or beneficiary, ensuring they receive the payout. This payout, also known as the 'mortality benefit,' helps your loved ones manage expenses and maintain financial stability.

5 Reasons Why Term Insurance is Worth It? 

 Purchasing a term insurance plan is one of the most reliable ways to ensure that you and your family have adequate financial protection to face the challenges of life. 

Here is a list of reasons why buying term insurance is good:

• High Life Cover at Low Cost:
  A term insurance plan is the most reliable type of life insurance known for being highly affordable. One of the main benefits is that it offers extensive coverage at a much lower premium than other life insurance policies. Buying a term plan at a young age is even better because premiums are lower, and you can get higher coverage for the same price.

• Cover for Illness:
  A serious illness can happen to anyone at any time, and the medical costs can quickly drain your savings. That's why it's wise to be financially prepared. If you have a family history of critical diseases or simply want to be safe, adding terminal illness cover to your term plan is a good idea. This option is usually available at a small extra cost and can provide essential financial support during difficult times.

• Tax Benefits:
  Term insurance also offers tax savings under the Income Tax Act, 1961. You can claim deductions on the premiums you pay under Section 80C. Also, benefits from Term Return of Premium (TROP) and maturity payouts are exempt under Section 10(10D). With term insurance you can enjoy term insurance tax benefits. 

• Add-on Benefits:
  You can enhance your term plan by adding riders for extra protection, such as accidental death cover, critical illness cover, or disability benefits. These term riders come at a small additional cost, but the options and features may vary between insurers. Always check the details before making a choice.

• Peace of Mind: 
  Finally, term insurance offers peace of mind. Knowing that your family members will be financially protected in case of an unfortunate event allows you to concentrate on the present without worrying about their financial future. 

How to Increase the Value of your Term Insurance Plan? 

To make the best use of your term insurance, you need to plan ahead and keep track of your changing needs. Here are some simple tips to ensure your policy gives you the proper protection at every stage of life:

• Buy Early for Lower Premiums
   The younger you are when you buy term insurance, the cheaper your premiums will be. Locking in a low rate early means you save money in the long run while getting a high coverage amount.

• Choose the Right Coverage Amount
  Check how much coverage you need. Consider your loans, income, and family's future expenses, like education and daily living costs. This ensures your loved ones will have enough financial support without you being under- or over-insured.

• Choose the Right Policy Term 
  Choose a policy term that matches your life goals such as like paying off loans, funding your children's education, or reaching retirement. Ensure the coverage lasts as long as needed, or even a little longer, to cover unexpected situations.

• Add Riders for Extra Protection
   You can enhance your policy coverage by adding riders such as critical illness cover, disability cover, or a premium waiver. It is always suggested to choose riders that suit your health risks and lifestyle to prepare you for unforeseen events.

• Review and Update Your Plan
   Life changes, such as marriage, children, new loans, or job shifts, can affect your financial needs. Review your policy regularly and update it when necessary. You can adjust your existing plan or even buy an extra policy if your current one lacks coverage.

How to Buy Term Insurance From Policybazaar in 2025? 

You can buy term plan insurance online by following the steps below:

• Step 1: Visit Policybazaar and go to ‘term insurance’ plan

• Step 2: Enter your name, gender, contact number, and date of birth

• Step 3: Fill in your smoking habits, educational qualifications, occupation type, and annual income

• Step 4: Select the most suitable plan and proceed to pay