One important thing that the COVID-19 pandemic has taught us is that life is full of uncertainties. This is the reason why One day, you might be healthy and working, and the next day you might be diagnosed with a terminal disease or get involved in a fatal accident. If something happens to you, your loved ones will be left to pick up the pieces. They will have to deal with a lot of things like funeral expenses, paying off all their debts and caring for their dependents.
A term plan is a helpful asset that can support you in such challenging situations. It is a life insurance policy that provides a death benefit to your nominees if you die during the policy term. With a term plan, the family of the policyholder can use the financial assistance to pay off debts, manage monthly expenses and more.
That said, this insurance plan can be a valuable financial asset for protecting your loved ones financially. Now the question arises why it is wise to invest in a term plan in 2023. We have elaborated on some of the points which might be helpful for you:
Why is it wise to invest in a term plan in 2023?
The average premium for a term insurance policy in India is INR 5,000 annually. The premiums are really low and affordable in term plans, giving every individual the opportunity to achieve financial freedom. There are various types of life insurance policies available. One can also find policies with investment options to grow wealth.
Term insurance provides the flexibility to customise your policy to suit your specific needs. You can select the sum assured, policy term and payout option according to your financial goals. This adaptability also allows you to adjust your coverage at important life milestones, such as marriage, childbirth and retirement.You can choose the terms of the policy according to your needs. If you are young and healthy, you can select a shorter policy term, and you have to pay minimum premiums. If youβre older or have health issues, you can choose a longer policy term and pay higher premiums.
Under Β Section 80C of the income tax Act, you can claim up to INR 1.5 lakhs as a tax deduction for the premiums you pay towards a term insurance policy. The death benefit which your nominee will receive in the account of your death is tax-free under Section 10(10D) of the Act.
Knowing that your loved ones are financially secure will surely give you peace of mind and allow you to live your life to the fullest.
Did you know the average cost of raising a child to the age of 18 in India is 1.5 crore? A term plan might help you save for your childβs education, marriage, etc. Not just for your child, but term insurance also helps in achieving your goals, be it starting a new business or building wealth.
A term plan is beneficial because you can leave a legacy for your loved ones and live life to the fullest without worrying about the future.
Tips for choosing the term insurance plan
Investing in a term insurance plan is one of the best financial decisions you can make for your loved ones. Itβs a great way to ensure that they will be financially secure at all times, and it will also give you peace of mind. So what are you waiting for to get a term plan today?