having a term insurance plan is one of the most important financial decisions that you can make benefits of  term insurance

  1. term insurance is one of the most affordable forms of insurance out there to put that into perspective we pay about 2% of the cars present value as its premium in comparison term insurance plans are available at as low as 01 percent of the sum assured that’s 20 times cheaper than a car insurance premium not only is term insurance the least expensive insurance out there but to add a cherry on top of the cake most insurance companies on online offer an extra discount on your term insurance premiums as compared to offline channels do make sure you take advantage of this and further lower your term insurance premiums.
  2.   term insurance plans offer a much higher coverage as compared to traditional or ULIP plans in traditional or unit linked plans the coverage offered is generally 7 to 10 times of the premium you pay if you pay an yearly premium of 20,000 rupees you can expect about 2 lakh rupees of sum assured 2 lakhs of sum assured is too lower coverage and might cover only 3 to 5 months of your family’s expenses on the other hand term insurance plans of a much higher sum assured so that you can leave your family and dependents with enough money so that they don’t go through financial hardships in your absence ,net term insurance plans offer high life insurance coverage at very low premiums.
  3.  benefit number 3 term insurance plans are super simple to understand simplicity is one of the reasons for the growing popularity of term insurance plans term insurance plans are Pure Life covers which focus on offering your dependents the contracted sum assured in case you were to die you simply need to ensure that you have been paying the premium properly, benefit for term insurance plans offer immense tax benefits. there are three types of tax benefits that term insurance plans offer
  4. benefits under Section 80C which allows an exemption for life insurance premiums of up to 15 lakh per annum to benefits
  • under Section 10 (10) D which pertains to death or maturity benefits that are  payable under the policy this section directs all insurance benefits payable to be fully exempt from taxes which means your beneficiaries will get the entire coverage upon your death and no taxes will be deducted
  •  benefits under Section 80 D which allows an exemption to that part of the premium that is paid for health related cover ages like critical illness riders which can be added with a term insurance plan remember tax laws change often so it is wise to be on top of this and consult your  tax advisor for greater details
  •  the premiums of term insurance plans are locked for the duration of the plan it is surprising how many consumers don’t know this but when you purchase a term insurance plan you are effectively locking the premium that you will be paying this year the next year and every other year until the end of the term plan and this is where it becomes highly beneficial and smart of you to start your term insurance plan as soon as possible when the premiums are lower for younger ages

 lets do some math here if one were to take a 1 crore term plan at the age of 30 years the premium would come to approximately 10,000 rupees for a plan that provides coverage until 75 years of age this means you are paying 10,000 rupees every year for the next 45 years which totals to 45 Lakh rupees lets say one word to procrastinate and decide to enroll on a term plan much later say at the age of 45 years at this age the annual premium is going to be much higher at about 30,000 rupees per year which means you will be paying 30thousand rupees every year for the next 30 years with totals to 9 lakh rupees so figure this when you enroll to the plan at 30 years you would have been covered for 45 years and the total premium outlay will be 45 lakhs but you procrastinated and when you are enrolled at the age of 45 you would have been covered for only 30 years but you would have paid double the amount of premium in those 30 years at 9 lakh rupees as compared to 45 if the plan was taken at a much earlier age of 30 be smart about term plans and don’t wait any longer to enroll for one great so let’s summarize what we have learned thus far term insurance is super affordable it provides very high coverage its very simple to understand offers tax benefits under Section 80C 80D and 10(10) D and lastly your premium is locked for the entire duration of the policy beyond these five points term insurance perfectly complements your goals and can be used in many ways to ensure you always live with good peace of mind knowing that essential things like money have been taken care of for your family even in your absence.

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