As the bread winner of the house, you guarantee the fulfillment of all the needs of your dependents. Not only that, you also carry the responsibility of helping them realize their dreams. With so much depending on you, have you wondered how they would cope with life if you were not around? Meeting life’s expenses would get difficult enough for your family, leave alone fulfilling their dreams. That’s why you need to have a robust plan in place that will take care of your loved ones when you are not around. Here is where a term life insurancecomes to your rescue.
A simple explanation of the plan would be – a person decides to buy a policy for a period of 30 years. He is required to pay a fixed premium amount that can be paid annually or semi annually. The policy holder designates a beneficiary for the policy who will avail the death benefit of the policy. In case of the sudden demise of the policy holder within the period when the policy is active, the insurance will hand over the sum assured to the nominee of the policy as the death benefit. A term life insurance offers cover for most of the natural causes of death, depending on the specific policy. You can avail cover for death in case of ill health, accident, terrorist attack etc. You can also include a few riders with your policy to get cover for certain aspects are not insured by the policy.
A term life insurance is a fool proof means of securing your family after you. Some of its benefits are as follows –
Financial security to your family – In case of the unfortunate demise of the policy holder, the sum assured is handed to the nominee of the policy. This lump sum amount is extremely beneficial for the family members to meet the different requirements of life. It can get very difficult to cope with the emotional loss as well as make ends meet. While there’s nothing much that can be done for the emotional loss, the policy makes sure that you face no hardships financially.
Cover for education – Term life insurance makes sure that an eventuality does not affect the education of your children and they pursue their dreams as planned. Many term insurance policies offer special benefit and cover for child education. You can avail an amount that is either given lump sum or at regular intervals to aid the education of the children.
Tax benefits – While the policy is meant to ensure your family’s financial safety, a term life insurance offers you excellent tax benefits in your life time. You can avail tax savings on the premium paid and the benefits received subject to the prevailing provisions under Income Tax Act, 1961.
Why is a term life insurance worth investing in?