A term plan is basically a contingency plan that goes into action and takes care of your family’s finances if something happens to you when they are most vulnerable. India Spend has reported that 988 million Indians do not have life insurance - and the ones that do, are not adequately prepared. The insurance policyholders are under-estimating the impact of a financial emergency - India Spend has reported that insurance policyholders won’t be able to cover more than 90% of the unexpected costs of an emergency.
Such alarming facts amplify the need for term insurance now more than ever. Term insurance comes with a unique set of benefits that can help policyholders financially secure their future:
Affordability: Term plans come with affordable premiums and are built on the insight that your loved ones are more vulnerable at particular periods in their life. Term plans, therefore, let you buy protection for your family for a limited - and relevant - period of time. Unlike Whole Life Insurance, they do not stretch to the end of your life. They only provide cover for the term specified in the contract.
High Sum Assured: A term insurance plan, while providing you with utmost affordability, also gives you the benefit of a high sum-assured. Some term plans even offer policyholders a sum assured as high as Rs. 1 crore and above.
Tax Benefits: By opting for a term plan, one can help reduce their tax burden considerably. If you opt for the old taxation regime of 2019, which still offers deductions and exemptions, your term insurance premiums and payouts can be eligible for tax benefits.
Flexible Coverage: Term insurance plans can be tailored to one’s financial requirements. One can even tailor the coverage offered under such plans. The three broad types of coverage on offer are:
Flexible Payout Options
Term plans offer flexible payout options like the following:
Beyond the baseline plan, you can also opt for additional protection by way of built-in riders. In addition to your pre-determined sum assured, you get a sum of money on diagnosis/declaration of a specific situation. Some of the riders available are:
A term plan is a vital addition to any working person’s financial plans. They are flexible, come with affordable premiums, and provide long-lasting protection for the ones you love. A term plan protects your families from unpredictable financial emergencies. One such term plan that is tailor-made for you and your loved ones is the iSelect Star Term Plan from Canara HSBC Oriental Bank of Commerce. The iSelect Star Term Plan offers extensive protection at premiums that fit everyone’s budgets. You also benefit from flexible premium payment options, joint spousal cover, 4 different riders available and return of premiums benefit!