Bhai Dooj celebrates the spirit of love and affection between a sister and a brother. By means of celebration, the brother promises to secure his sister through every difficulty. So, if you are looking out for Bhai Dooj gifts for your siblings, nothing can be better than gifting financial protection to them this Bhai Dooj.Read more
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When the festival is all about protection, what could be a right gift than a Term insurance plan? A term insurance plan is the best way to financially protect your loved ones if and when any unfortunate event happens. We all have a different relationships with our siblings but one thing that remains the same in all is the endless love. In this article, we will discuss how term insurance can be the perfect gift for your beloved sibling this year.
Term Insurance is the purest and simplest type of life insurance plan that provides financial protection to your family at affordable premiums. With these plans, you can avail of a high Life Cover (i.e., Sum Assured) at comparatively low premium rates. This benefit money is paid out to the nominee/beneficiary in case of the policyholder’s death during the policy tenure. You can select the policy from the insurer of your choice on the basis of your requirements and suitability. This would be the ideal Bhai dooj gift as it does not empty your pockets and secures your sibling financially for a long period of time.
Still not sure why you should buy a term plan? Here are some ways in which term insurance will benefit your loved one in the long run -
Long Life Cover
A long life cover will ensure that your beloved sister or brother is economically covered for a long period of time. During this tenure, in case of an unforeseen event, the nominee receives the sum assured which will help them financially stabilize their life. This life coverage can go up to 99 years of age with their long/whole life cover.
One of the biggest benefits of Term insurance is its affordability. With its comparatively low premium rates, it financially covers your sibling without breaking the bank.
It is also essential to keep in mind that the lower the age, the lower will be the premium. Thus if you want term insurance with a low premium you should buy one as soon as possible.
Easy to Understand
For a person who is not familiar with insurance-specific terms, it can be quite difficult to understand the policy and its details. Term insurance is really easy to understand as it is pure life insurance with no investment element in it. It provides life cover over the fixed policy term as long as you pay the premiums.
Return Of Premiums
Return of Premium is a type of term plan that returns the premiums paid during the term duration in case the policyholder outlives the policy term. This returned premium is subject to tax deductions along with other nominal charges.
Multiple Premium Payment Options
This option allows the policyholder to pay the premiums at their convenience. The premiums can be paid on a monthly, quarterly, bi-annually, or yearly basis.
Benefit of Additional Riders
With term insurance, you can enhance your base coverage using term riders in case of an unforeseen event. These riders can provide cover against Critical Illness, Permanent or Partial Disability, Waiver of Premiums, Income Benefit, and Accidental Death Benefit.
Term insurance offers a death benefit to the nominee of the policyholder in case of unfortunate death of the assured. This death benefit is the sum assured that is selected at the time of buying the policy. This allows the beneficiary to continue their lives even after the unexpected death of the main income earner. This amount can be used to pay off any loans or unexpected expenses that may arise in the future.
Tax Savings Benefits
Get tax benefits under Section 80C and Section 10(10D) of the Income Tax Act. Section 80C allows savings on premiums whereas Section 10(10D) provides tax exemption on the lump sum benefit paid as a death benefit under this plan.
The key factors to consider when looking for term insurance are as follows:
Determine the appropriate coverage you would need to ensure you are not under-insuring yourself. The general rule of thumb is that the life cover should be at least 10 to 20 times your annual income.
Assess your requirements and budget to make sure that the sum assured is enough to take care of your financial needs in case of the breadwinner’s unexpected death. You can also use a term insurance calculator to determine the premiums you would need to pay against the life cover you need.
Claim Settlement Ratio (CSR) is the total number of claims settled to the total number of claims raised. This value is released by the IRDAI each year for every insurer and it is advised to go for a plan from an insurer with a high CSR ratio.
Solvency Ratio is the insurer's ability to take care of its financial obligations. You need to consider a plan from an insurance company that is capable of meeting its short and long-term financial debts.
Online and offline comparison is important because term insurance is much more affordable online than they are offline. This is because there is no agent commission added to the premium rate.
You can buy term insurance online in a few simple clicks from the comfort of your home. Following are the steps you would need to follow to buy term insurance online
Fill out the Term Insurance form on Policybazaar’s official website
Enter your name, date of birth, and mobile number
Enter your occupation, income details, educational background, and smoking or chewing tobacco habits
Submit the details to view the available plans
Select the plan as per your preference and proceed to pay
Bhai dooj is all about praying for your brother’s long life and giving your sister a gift in return as a token of love. Term insurance might be the best and most suitable way to celebrate Bhai dooj this year. With term insurance, you would be giving the gift of financial security that will cover and support them financially, in times of crisis.
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