When It Comes to Term Insurance, Expect More and Pay Less

term insurance
Image for representation

Many investors perceive term life insurance plans to be one-dimensional. However, these plans serve a vital purpose in your financial portfolio – securing your investments and your loved ones against life’s contingencies. Traditionally, term insurance plans have a more straightforward policy structure, low premium rates as compared to other forms of life insurance plans and offer considerable life coverage.

With the introduction of smart term plans from reputable insurers such as Max Life Insurance, you can now invest in the financial security for your loved ones in your absence, while making sure that you remain protected throughout your life as well.

Primarily, the best term life insurance plans pay a considerably large sum of money to your family in case of your unfortunate demise during the policy tenure. Smart term plans; however, take the efficacy of these policies up a notch by offering additional benefits such as multiple death benefit payout options, accidental coverage, critical illness cover, and premium waiver.

Therefore, protecting your investments with term insurance allows you to make sure that your family has adequate financial assistance to meet their day-to-day expenses and save for their future. Let us take a closer look at how you can expect more yet pay less for term insurance and its benefits.

Higher Coverage Tenure Under Term Insurance Plans

The choice of policy tenure rests with you. Thus, you have to flexibility to choose the policy term as you see fit. Given the fact that term insurance benefit is payable only in case of your demise within the policy term; you must opt for an extended coverage tenure.

Nowadays, reputable insurers are also offering term insurance plans with return of premium benefit (ROP), which essentially pays back the total amount of annualized premium paid towards the plan in case you survive the policy term. Therefore, you have the advantage of opting for a policy coverage of up to 50 years or more, while making sure that you would receive the entire sum paid towards the plan at the time of maturity.

Flexible Premium Payment Tenure

Usually, a more extended coverage period implies that you have a longer premium paying tenure (if you choose to pay the premiums regularly, throughout the term plan tenure. Recently; however, some of the best term life insurance plans allow you to pay the premium either for a limited duration or up to the age of 60 years, while you are still working and earning a salary.

Even if you choose the ‘limited pay’ option or ‘pay till 60’ variant, the policy coverage would continue for a more extended period. For example, if you purchase a term insurance plan at the age of 40 and choose a policy tenure of 40 years and a premium payment term for up to 60 years of age, you would have to pay the premium for only 20 years, while the policy benefits continue till the age of 80 years of age.

Comprehensive Tax Benefits

The government allows investors to claim tax deductions of up to Rs. 1.5 lakhs under the Section 80C of the Income Tax Act, on the premium amount invested towards a term insurance plan. Therefore, you can significantly reduce your tax liability during your working years by purchasing a term plan, while securing your family’s financial future against any eventuality.

Here you need to understand that the total amount of tax deductions under Section 80C is Rs. 1.5 lakhs, meaning that you can either maximize the available tax deduction with only a term insurance plan or choose to claim the maximum possible deduction through investments into multiple instruments, including term insurance.

Accelerated Payouts in Case of Critical Illness

More recently, some of the best term life insurance plans offer an accelerated payout of insurance benefit in case the policyholder is diagnosed with a life-threatening ailment such as cancer, kidney failures, or cardiovascular health issues. Some of the term plans offer additional financial help to payoff treatment expenses for as many as 40 critical illnesses.

This way, you can secure your family’s financial future while making sure that you don’t have to compromise with your health, in case you are diagnosed with a critical illness and lack adequate savings to opt for the best possible treatment.

Term Insurance: Your Best Protection Against Life’s Uncertainties

Nowadays, insurance companies offer a variety of term life insurance plans to help you evaluate and choose one that suits your individual needs and requirements. You can easily find insurance plans online, where you have the flexibility to compare and then purchase a plan that offers benefits such as limited premium payment tenure, comprehensive coverage, low rate of premium, critical illness cover and much more.

You can also look for some of the best short-term mutual funds to maximize your savings through market-linked returns. This way, you can diversify your investment portfolio with the right options for wealth creation and contingency planning.

Leave a Reply

Your email address will not be published. Required fields are marked *