We never really know what’s coming for our family and us. Life is full of ups and downs. That’s why you need to be prepared for uncertainties and unforeseen events. Being prepared today ensures that our loved ones and we are prepared for tomorrow. Investing in a term insurance plan has seen a rise in the past couple of years to provide financial security and ensure that our family and we have a secure and seamless future. A term insurance plan will ensure that you and your family are able to achieve all your goals and dreams without having to face any financial restrictions.
There are several reasons why you need to invest in a solid term insurance plan for yourself and your family. Let us look at a few of them.
5 Points Why You Need a Solid Term Insurance Plan
1. Provides Financial Security to You and Your Family
Unforeseen situations can come around anytime, even without a prior warning, be it an untimely and unfortunate demise of the earning member of the family or diagnosis of a critical illness. In these grave situations, our family and we may face hassle while coming to terms with it.
2. Tax Benefits
Another key reason why you need to invest in a solid term insurance plan is tax benefits. The premiums paid by the policyholder are eligible for the tax benefits under Section 80C of the Income Tax Act, 1961. The policyholder can claim up to Rs. 1.5 lakhs of tax benefits under this section.
3. Secure Your Assets
There might come an unforeseen financial emergency wherein we might have to take a loan or debt. What if we meet with an unfortunate event, such as the untimely demise of the policyholder? This may create an emotional and financial burden on the family. Moreover, the family might have to pay off the loan against the valuable assets in such cases. A term insurance policy ensures that your assets are secure and your family is able to pay off the loan without any financial constraints.
4. Covers Majority of Critical Illnesses
We never know when we might get diagnosed with a critical illness, such as cancer, kidney failure, heart problems, etc. Moreover, the cost of medical treatment is skyrocketing, which might make it difficult for you and your family in the coming years. Investing in a term insurance policy ensures that you and your family do not face any financial struggles and you can fully focus on your recovery.
5. Additional Rider Benefits
Investing in multiple term insurance policies to avail larger coverage and wider benefits can be confusing and can create a hassle. A term insurance policy gives you the provision to avail additional rider benefits. It further ensures that you do not have to invest in multiple policies and can avail various benefits under one policy. The policyholder can choose from various rider benefits, such as critical illness rider benefits, accidental death rider benefits, waiver of premium rider benefits, etc.
You now know 5 reasons why you need to invest in a term insurance policy for yourself and your family. Having invested in a term insurance plan ensures that you are at peace of mind and are able to tackle unforeseen and unprecedented events without any financial constraints. So, if you have planned to go down the road of investing in a term insurance plan, we recommend you going for a leading and trusted insurance providing company, who provide many investment plans.