Don't Waste Time! Buy Your Term Insurance Plan

Death is uncertain. You never know when it strikes. Several road accidents take place in India. These accidents not only kill; they can seriously maim or injure. Critical illnesses are dangerous killers. There is a possibility that even a healthy person may suffer from a chronic ailment.

Put simply, life is unpredictable. How about the financial future of your dependents? Can this be certain? Yes, it can with term life insurance. When life is uncertain, there is no point in wasting time or delaying availing term life insurance.

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Do Not Waste Time! Buy Your Term Insurance Plan

Concept of Term Insurance

Term insurance is pure risk protection. Nominees get the death benefit if policyholder dies within the tenure. This plan offers no survival benefit.

The premium for term insurance is comparatively lower as there is no investment element, unlike endowment plans and ULIPs.

Term insurance premiums vary from insurer to insurer. Each insurer has its own eligibility criteria. The minimum age of entry is 18 years; whereas the maximum age is 65 years.

See Also: Term Insurance Plans with Return of Premium

Why Term Insurance?

• To provide complete financial protection to family members; in case of the premature death of the policyholder.
• To help dependents enjoy a debt-free life.
• To make dependents financially independent.
• To get financial support in case of medical emergencies (term insurance with critical illness rider)
• To save you from accidents (term insurance with permanent disability rider).

Benefits of Term Insurance

• Higher cover at a lower premium
• Flexibility and customer-friendly plan
• Add-on benefits (term insurance riders)
• Simple to understand and easy to buy
• Best income replacement plan
• No brokerage for online term insurance plans
• Low claim rejection ratio (the ratio between the number of claims filed and the number of claims settled)

See Also: What to Consider While Buying a Term Insurance Plan?

Term insurance Tax Benefits

• Under Section 80C of the IT Act: The term life insurance premium paid up to Rs 1.5 Lakh a year enjoys tax deduction under Section 80C.
• Under Section 10(10D): Death benefits are fully tax-free. It means the beneficial nominee does not have to pay any taxes on the death benefits received.

 What is the Right Age to Buy Term Insurance?

One has to avail term insurance at an early age. It can be availed in your 20s, 30s, and even 40s. When it is bought at an early age, the premiums are lower. With age, premiums too rise.

 HDFC Life Click 2 Protect Plus Plan

Case 1:

Age of the policyholder: 30 years

Sum assured: Rs 1 Crore

Yearly premium: Rs 10,378

Policy term: 30 years

Total premium paid: Rs 3,11,340

Case 2:

Age of the policyholder: 45 years

Sum assured: Rs 1 Crore

Yearly premium: Rs 22,085

Policy term: 15 years

Total premium paid: Rs 3,31,275

There is a difference in the premium paid in case 1 and case 2. This is due to age and this illustration helps understand the importance of buying term insurance at an early age.

Benefits of Buying Term Insurance at an Early Age

• To lead a stress-free life
• Your dependents enjoy financial protection
• Save taxes.

See Also: Benefits of Buying Term Insurance Online

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