How term insurance helped Mrs. Sharma's family in pandemic

If you are the only breadwinner of your family, the thought of your family’s well being in your absence might wander in your head. Life is complex and nobody can understand its perplexity. All you can do is take necessary precautions to mitigate risks associated with it.

However, often at times, you may find yourself in uncontrollable circumstances and in situations that are beyond the grip of your hands. As there's always some sort of risk associated with life, one certainly has to plan things to prevent their family from going through a financial crisis.

Term policy is a good option to plan for the betterment of your dependents and loved ones. In this article, you will learn about the importance of buying a term policy along with a quick rundown of some of the best term plans available in India.

What is a Term Insurance Policy?

Term Life insurance is a financial policy that provides you a cover for your life. These plans demand lower premiums and offer a high coverage value to your preferred nominee. In the event of your unfortunate death, the policy will provide monetary benefits to your family in either regular intervals or lump sum. Term plans have gained great popularity in the past few years because of their exceptional benefits. As a result, several insurance companies provide these plans at lower premiums with higher coverage. There are several types of term plans available in the market that you can choose from as per your requirements and financial capabilities.

Importance of Term Insurance Policy in Life

While term policy offers coverage for your whole life, there are several other benefits associated with it that make this plan a crucial aspect of your life. Let us take a look at why term insurance should be at the top of your financial planning and its importance:

1. It allows you to save taxes

Term insurance not only offers benefits after you're gone forever, but it also allows you to enjoy financial benefits while you are alive. Under section 80c of the income tax act of India term plans are eligible for a tax deduction and benefits of up to rupees 1.5 lacs.

2. It provides a concession-free death benefit

Although your absence can never be fulfilled with any kind of monetary value, you can still have peace of mind by knowing that your loved ones have a financially secure future with a term policy. These plans provide the entire sum of the death benefit in the event of your demise without any kind of deductions, which allows your dependents to live with a sigh of assurance.

3. It helps your dependents pay mortgages and debt

As term insurance policies provide multiple payout options to your family after your demise, you can always have peace of mind that they will be able to pay off all the depth, mortgages, and expenses while you are not around. This will also ensure that your family does not struggle through any kind of financial burden in your absence.

4. It encourages your family to live a stable lifestyle

It can be extremely difficult for your family to survive after your death, especially when you are the only earning member of the house. To help your dependents live the same lifestyle and cope  with day-to-day expenses, an online term life insurance plan is certainly a good choice. At least it makes things significant for your loved ones.

Top Term Insurance Plans Available in 2021

1. Aditya Birla Sun Life Protector Plus Plan

The Aditya Birla Sun Life Protector Plus plan is a traditional investment policy that provides a significant assured sum upon your death at a very affordable premium rate. It is an ideal plan to cope up with the growing cost of living because it allows you to increase your assured sum amount at any point during the tenure of your policy. The plan also features an inbuilt disability cover to extend its coverage even more.

2. Aegon Life iTerm Plan

With an inbuilt terminal illness benefit, the Aegon Life iTerm Plan is a pure term policy that offers you coverage until the age of 80 years. The process of getting this policy is completely hassle-free and simple because it can be purchased online with minimal paperwork required. Moreover, you can also choose from several optional riders such as accidental death rider and critical illness rider to extend your coverage even more.

3. Canara HSBC Oriental Bank of Commerce iSelect Star Term Plan

The iSelect Star Term plan by Canara HSBC Oriental Bank of Commerce is a thoroughly designed policy that aims to provide reliable financial security to your family and help them meet their daily needs in your absence. It features multiple options for premium payments and coverage that make it a highly flexible option for you. The plan is also eligible for tax deduction and benefits under section 80c of the income tax act.

4. Aviva Life Shield Advantage Plan

The Aviva Life Shield advantage plan is a non-participating and non-linked protection plan that protects the financial future of your family from unprecedented eventualities. In addition to the death benefit to your family, the plan also provides survival benefits in form of the return of premium in case you survive throughout the tenure of your policy. This plan can also be purchased online without any hassles and with minimal paperwork.

Bottom Line

Life is full of surprises and you never know what could happen next. With that said, if you want to prevent your family from suffering, you need to purchase an online Life insurance plan and safeguard a financially healthy future for your loved ones.