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Why does Term Insurance Needs to Be Part of Your Financial Plan?

Why does Term Insurance Needs to Be Part of Your Financial Plan?

Life is very uncertain as one never knows what may happen next. Therefore, in order to ensure your family's security, it's vital to include an insurance policy in your financial plan. Insurance is the most important part of financial planning, although people tend to ignore this component as they focus more on wealth generation than protection. But, considering the rapid change in lifestyles, the need of life insurance has become equally important. There are different types of insurance plans that safeguard you and your family against the unnecessary expenses that arise due to death, accident, disability, illnesses and term plan is one such plan which can help you with the same at the time of any eventuality.

Term insurance policy prepares you against the unfortunate events that may occur anytime in life. It's a simple product that offers financial coverage and stability to you and your family in case of any mishap. Also, in case of term plan, if the insured person dies during the policy period, then death benefit is paid to the beneficiary by the insurance company so that in his/her absence, the family not just becomes financially independent but also, is able to fulfill the pending obligations of the individual, like child's marriage, higher education, etc. Besides, here's the few reasons that shows why term insurance needs to be a part of your financial plan –

  • Flexibility - Flexibility is one of the most important benefits of buying a term insurance plan. You can choose to go for an online or an offline plan depending on your needs. Moreover, it gives you the flexibility to choose your policy term and premium payment option. Along with this, you can change the plan or customize it as per your requirements.
  • Simplicity - As compared to other plans, term insurance policies are easy to understand. All you need to do is to pay the desired amount of premium and get yourself covered under the policy.
  • Tax benefits - Tax advantage is yet another significant feature of a term insurance policy. In case of a term insurance, not only the premium amount is less, but the premium paid towards the policy is eligible to tax deduction under section 80C and Section 10D of the Income Tax Act.
  • Financial stability for longer tenure - Term insurance provides complete financial security. This plan offers the choice of life cover up to the age of 80 with terminal illness and in-built death cover.
  • Spouse cover - Term insurance plan also offers spouse cover. It gives you the option to cover your spouse under one contract. This pure protection plan provides multiple benefits to you and your spouse. It ensures that the future of your partner is secured in your absence.
  • Rider benefits - One more benefit of buying a term plan is its optional riders. If you are willing to add a lit extra protection in your plan, then include these riders at an additional cost. For example, in case of a term plan, you can opt for accidental death/disability benefits.
  • Future financial security - Term insurance is one such life insurance plan that offers high coverage at lower premium rates. Though other insurance plans might promise you lifelong coverage, guaranteed returns, but term insurance offers high sum assured at affordable premium. It ensures your family's complete financial security at low premium.
  • Low premium rates - One of the major benefits of buying a term plan is its lower premium. The premium rates of term insurance are very less as compared to other traditional plans. To get a life cover, one only has to pay just one percent of his annual income.

On the whole, a term insurance plan has got several benefits. Thus, it's definitely a wise decision to buy a term insurance especially if you are the sole breadwinner of your family.

So, if you are planning to opt for a term insurance plan online, then choose to go with iSelect+ Term plan by Canara HSBC OBC Life Insurance. This protection plan offers life insurance, spouse cover, lower premium rates for women as well as terminal illness cover along with accidental death benefits.

Speak to an insurance specialist now!

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