Top 6 benefits of Term Insurance

1. Top 6 benefits of Term Insurance A term life insurance policy is a way to make sure your loved ones are taken care of in your absence. It makes sure that they stay financially secure and continue with their lifestyle comfortably. A term policy is a ‘must-buy’ for every family breadwinner. You can take advantage of its multiple benefits, if you make an informed choice and choose a policy that covers at least your earning years. 1. The highest amount of death benefit: One of the best features of a term life insurance policy is that it offers a very high payout sum to the nominee (a person you choose to receive the insurance money on your death), as compared to ULIPs and Savings Plans. The death benefit is high enough to replace the income of the primary breadwinner upon his/her death. The payout can cover important expenses such as a child’s education, their marriage an outstanding loan, etc. 2. Relatively low premiums make them affordable: The premiums are super affordable. For instance, Aegon Life’s iTerm Prime offers you a life cover starting at ₹25 lakh and can go up to any amount. The monthly premiums start at as low as ₹400 onwards, if you buy the policy at age 25. The best part is that the premium amount will remain fixed for the entire term of the policy. Even if you start late, the premiums are still super-light on your pocket. However, it is advisable to start early and save on premium amount. Calculate your premium here.

2. 3. Life cover: A term policy provides insurance coverage for a specified time-period. Your family will be guarded against any financial crisis that might arise due to your death, during that tenure. So, if you are 30, you can buy an insurance policy for a tenure of 40 years, which will provide protection to your family till you turn 70. By that time, you would have fulfilled most of your financial responsibilities, and your children will be financially independent. From here on, your savings and a good retirement plan should be enough to cover you and your spouse at this age. Want to know how much term cover suits you best? Click here. 4. Riders: Riders are additional benefits that you can consider adding to your existing policy. Riders provide extra protection against life risks like accident or illnesses. For instance, an accidental death benefit rider pays an additional amount in case of death due to an accident. A rider for critical illness offers a payout on diagnosis of the covered illness, which can help with medical expenses. The cost of adding riders too is easy on your pocket. 5. Tax benefits: You can avail tax rebate on the premiums you pay under Section 80C of the Indian IT Act. Section 10 (10D) allows tax exemption to the nominees, which makes the entire insurance payout tax-free. 6. Special Exit Options: Insurance companies have now introduced a unique feature where you can get all your premiums back after a certain age. For instance, if you buy Aegon Life’s iTerm Prime plan before the age of 40, you can choose to get all your premiums back at age 55 under the ‘Special Exit Value’ feature. A term insurance policy is not something that is ‘good to have’ but it is a ‘must have’ for every household. COVID showed us how unpredictable life can be. Be wise, buy a term insurance policynow, (if you haven’t already) and avail all the benefits listed above. Check out our blogs to learn more about term insurance.