Featured Image Caption: Term Insurance Plan
One of the most important things you have to prepare for as you become an adult is the weight of all responsibilities that come with it. First and foremost, it is important to ensure you are well on your way to being financially independent and are taking the right steps to secure your financial future along with that of your loved ones as well. While many steps can be taken to do the same, investing in a term insurance plan is perhaps one of the smartest decisions you could take at any point.
A term insurance plan is a kind of life insurance that requires one to make regular premium payments to their insurance company. The company, in turn, provides financial coverage for a specified amount of years, providing the same financial protection to the nominee in case of the policyholder’s untimely death. Term insurance has multiple benefits that make investing in one an important thing to do. Here are some of them:
- Affordable Premiums for High Life Coverage: A lot of insurance plans often charge high premiums for any amount of coverage, but with term insurance, you can pay affordable premiums for any coverage amount of your choice. For, e.g. you can receive a life coverage of ₹1 crore at a premium rate of just ₹441 per month.
- Freedom for Additional Riders: Having the flexibility to customise your term insurance plan according to you ensures you get the maximum benefit of your plan. Term insurance allows you to use additional riders alongside the basic coverage amount to also include things like waiver of premium, accidental death and dismemberment, partial and permanent disability, etc.
- Critical Illness Benefit: Health emergencies are most often than not unforeseen, and with today’s rising medical costs, having a financial backup for critical situations can be very helpful. Term insurance allows a critical illness benefit that covers many different critical illnesses like heart attack, kidney failure, cancer, etc.
- Tax Benefits: Under Section 80C, term insurance offers tax benefits on premiums paid upto ₹46,000. Plans involving additional riders and critical illness benefits are covers additional tax benefits of upto ₹7,800 premiums under Section 80D. You can also avail more tax benefits under Section 10(10D) on the money received by your family in case of the policyholder’s untimely death.
- Disability Support: Financial costs for disabled persons can be a fortune, so in case of disability, many plans such as ICICI Pru iProtect Smart, the company pays all your future premiums. Due to this, you can still keep your financial boat afloat with a life insurance cover even if you are unable to pay premiums.
With these benefits of term insurance and more, it is fairly obvious how this will help you be a financially stable adult. Investing in term insurance ensures you are never hugely impacted by any unfortunate events, and you’re prepared for everything. If anything were to happen to you, your family would receive a lump sum amount to be taken care of. Take a look at term insurance plans by ICICI, one of India’s most trusted insurance companies!