Gifts have a special significance in Indian traditions for everyone. The custom of giving presents is an expression of your love for your family. So how about giving the gift of everlasting financial security and protection? By giving a term insurance cover, you may ensure and safeguard the happiness of your family during important life stages.
Life is uncertain, and it is essential to plan for the future to secure your family’s well-being, especially in an unfortunate incident. It is a type of life insurance that provides coverage for a specified period, ranging from 5 to 30 years, and ensures that your family’s financial needs are met even after your demise.
A life insurance calculator is a simple and easy-to-use tool you may use online to determine the amount of coverage required based on your needs.
Term Insurance: A Quick Overview
The simplest and most basic type of life insurance is a term insurance plan. It offers cost-effective financial protection for your family members. Such insurance protection provides unrivalled financial security.
This coverage serves as your family’s financial safety net in the sad or untimely event of your passing. To purchase the policy, the policyholder should pay a premium. Hence it is important to understand all aspects of what is term insurance.
A form of insurance policy that provides benefits for a predetermined or short period is a term insurance policy. This life insurance policy provides a guaranteed payout for the duration of the policy period mentioned in the policy.
In other words, the beneficiary may receive the payout if the policyholder passes away due to an unexpected circumstance. It might be a nice present option for your family member and financially serve as a safety net in the event of your untimely passing.
Reasons Why Term Insurance Policy Is A Stunning Present for a Close Relative
Everyone in your family counts on you as the primary provider. Therefore, it will be difficult for them to handle their funds following your passing. Even though you don’t know what the future holds for you, you can at least stop things from worsening. Consequently, it makes sense to buy term insurance coverage.
For populations susceptible to financial problems, such as unemployed women, kids, and elderly parents, a term insurance plan is crucial. Giving term insurance as a gift can be a lifesaver in these situations. This is why:
You Can Easily Protect Your Finances
Your spouse, parents, and kids will be protected if you purchase insurance coverage. Remember that it grants your family financial freedom even after your passing. It is an investment for the future that benefits your family’s financial stability even after you are gone.
Defend Yourself Against Life-Changing Illnesses
Unfortunate situations can happen at any time in life. Therefore, it is best to maintain protection with such a policy. In addition to passing away, there are other unavoidable events like accidents or being given a serious illness diagnosis. A critical illness plan paired with term insurance can cover the high cost of care in such cases. Your family will enjoy a life free from financial stress if you purchase crucial life insurance with a term insurance policy.
Interested Tax Benefits
With term insurance, you are eligible for an 80C tax exemption on insurance premium payments. The most that can be exempted from taxes is Rs. 1.5 lakh. After the insured passes away, the nominee will get the benefits and is exempt from these taxes and has a monthly income available.
If you’re opting for the new Tax Regime, you will not get the benefit of these instruments. You can then try opting for the old regime.
The term insurance policy provides a monthly income for a constrained time. Along with the lump sum payment, the monthly income covers all your family’s other expenses. Additionally, it supports the healthy lifestyle of your family.
You get the most coverage for the lowest premium price when you purchase the term insurance early. With time, the premium payment will rise. Therefore, a term plan is the most cost- and pocket-friendly option, giving substantial returns for modest monthly payments.
Term insurance is affordable and easy to buy, making it an excellent option for individuals who want to secure their family’s future. Overall, term insurance is an investment in your family’s well-being that can provide peace of mind knowing that they will be taken care of no matter what happens. Make sure you get familiar with all aspects of what is term insurance.
You can use an online term insurance calculator to get a more precise estimate of the costs involved.