Life Insurance
TERM INSURANCE
If you think term insurance is a ‘waste of money’, think again…
Term insurance is by far the best form of financial protection
Life is unpredictable. So it is important to ensure that your family and loved ones are taken care of financially in case something should happen to you
Do any of these sentences sound familiar?
- I am too young to buy an insurance policy
- What’s going to happen to me? I am hale and hearty!
- I am always here for my family
- Health science is pretty advanced, people live much longer
A term insurance plan is taken for a specified period. During this period, if the person whose life is insured dies, the sum assured is paid. The sum assured is the amount of cover which is chosen at the time of buying the policy. The benefit under the plan is payable only if the person insured dies
The proceeds from the term plan will allow your family/ dependents to maintain their lifestyle, meet their financial goals, and pay off liabilities in case of your early demise. You can even opt for various riders available with term insurance to enhance its applicability.
Key Benefits of Term Insurance:
Term Insurance offers high life covers at the lowest premiums
Provide security and peace of mind to your family
Protect your home mortgage, loans, credit card borrowings etc
Ensure that your family/ dependents can maintain their lifestyle, meet their financial goals, and pay off liabilities in your absence
Simplicity of Term Plans:
It is a pure life cover. There is no investment component.
Death Benefit Options:
While term policies provide a lump sum maturity amount, you can get plans that combine lump sum and monthly incomes.
Tax Benefits of Term Insurance:
Both the premiums as well as the payouts offer tax benefits and exemptions respectively as per prevailing tax laws.
Benefits under Section 80C
Life insurance premiums up to Rs. 1.5 lakh per annum are exempt as per section 80C of the Indian Income Tax Act. This is also available for the life insurance premiums paid for your spouse and/or children.
Benefits under Section 10 (10D)
Term insurance plans offer certain payout on maturity and/or death of the policyholder. The maturity amount, or the death benefit, are fully exempt under the provisions of 10 (10D) of the Income Tax Act 1961.
