We all go through life worrying about unforeseen scenarios and events that may leave our families not just emotionally but also financially scarred, including the demise of the only breadwinner or any earning family member. What if you could invest in something that secures your family in case of any such financial emergency down the line? Term insurance is one such solution that you should consider for this purpose. Learn more about it in this article.
What is Term Insurance?
Term insurance is the purest form of life coverage. Where you pay a premium over a certain duration to get coverage for a specific amount, in case of your demise within this period, the insurer will pay this amount or sum assured to your family members. This helps them mitigate financial risks in such emergency situations, particularly if they are the sole earning member of the household.
Why Term Insurance Matters?
Here are some pointers on why term insurance is a must for every family.
- Term insurance offers relatively higher amount of life cover at a substantially lower price. It is among the cheapest ways of planning for the financial security of your family.
- The longer you wait to purchase your policy, the higher your costs, because your mortalities are considered to be lower at a younger age.
- You can choose your coverage depending on your specific requirements, i.e. your family’s future household costs, higher education of children, weddings, repaying debts, and so on. Always factor inflation into your calculation while choosing this amount.
- You can easily choose the policy tenure (ideally throughout your working life) and the premium payment frequency, along with the mode of payment of the sum assured in some cases (as a lump sum amount, monthly instalments for a certain period, or a combination of both).
- Term insurance also gives you tax deductions on premium payments up to Rs. 1.5 lakh under Section 80C, subject to certain conditions, while the payouts are also exempted from taxes under Section 10 (10D).
- In case of your demise within the policy period, the insurer will pay out the sum assured to your family, and they can use it to repay debts, meet financial costs on a day-to-day basis and even plan for long-term expenses like higher education without any compromises.
- This will give you peace of mind, knowing that your family is well taken care of even when you are not around.
- You can add riders or add-ons to your policy to cover your family financially for various situations. These include critical illnesses, terminal illnesses, accidental death or disability, and more. In such scenarios, the financial payout will help your family tackle emergencies without any issues.
Choose Term Insurance Today Without Any Delays
Someone had rightly said, “Precaution is better than cure.” This stands true for insurance. Hence, you should go ahead and choose term insurance right away without any delays.
