Term Insurance can secure your family’s future

1. Term Insurance can secure your family’s future • Imagine a family of six with a husband, wife, two kids and two dependent parents where the husband is the sole breadwinner. Now, imagine if the breadwinner dies leaving the family to fend for itself. Would the family be able to deal with the financial losssuffered? • If the breadwinner of a family dies prematurely, the family suffers both emotional as well as a financial loss. While compensating the emotional loss is impossible, the financial loss can be dealt with if there is a term insurancepolicy. • A term insurance plan is a protection oriented life insurance plan which covers the risk of premature death. If the insured dies during the policy tenure, the sum assured is paid so that the family can deal with the financial loss suffered. A term insurance plan, therefore, can help you secure your family’s financial future when you are not around. Here’s how a term insurance plan gives you financial security for your family – • Lowpremiums • The premiums of a term plan are very low since the plan covers only death risks. This makes the plan affordable for everyone and you can even opt for a high coverage level for optimalsecurity. • High sumassured • Term insurance plans do not limit the sum assured available under the policy. The main objective of the policy is to provide financial security and given the multiple financial needs that a family has, the plan allows you to opt for any coverage level which you think is sufficient in meeting your family’s needs and goals. You can, therefore, choose a high sum assured level to ensure that your family’s daily financial needs are taken care of and also they have sufficient funds at their disposal to fulfil the financial goals and live their life peacefully. The low premium rates also make a high sum assured an easypossibility. • Optional coverage through riders • You can equip your term insurance plan with additional optional riders which would make the scope of coverage more comprehensive. The plan would, then, not only cover accidental death but also major illnesses, accidental deaths, disablements, etc. depending on the ridersselected. • Taxbenefits • Term plans also allow tax benefits. The premiums paid are allowed as a deduction under Section 80C (up to INR 1.5 lakhs) and the benefit paid by the plan is also completely tax-free under Section 10 (10D) of the Income Tax Act, 1961. • A term insurance plan, therefore, allows you to ensure complete coverage against the risk of premature death. By buying a term plan you can buy peace of mind knowing that your family’s financial needs would be met even in your absence.