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Need assistance in choosing the right insurance plan? Get a call from our Expert.

Need assistance in choosing the right insurance plan?Get a call from our Expert.

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5 Benefits of Term Plan as a Pure Risk Protection Cover

The pandemic has taught valuable financial lessons to the entire world. It has instigated the importance of financial security for a family during unprecedented situations. If your family is dependent on your income for their survival, then it becomes your responsibility to ensure financial well being at different stages in their life.
 

Also, you must make sufficient financial resources to pay off debts and reduce the financial stress for your family in your absence. So, what can be one best option to satisfy these financial needs? Have you been introduced to the term insurance plan?
 

Here are five benefits of a term plan that serves as a pure risk protection cover.

 

  1. Affordability

    When you invest in financial instruments to secure your future, it should ascertain a good return and be affordable. When it is affordable, you will be able to invest comfortably and stay invested for a longer period. Plans are pure protection life insurance policies that provide the sum assured to your family in case of your unexpected death. Therefore, it is available at an affordable price.

    Also, the term insurance premium is based on your health conditions and lifestyle to a certain extent. So, if you invest early in age, the probability of having a serious health disorder is less, reducing the risk of death lowering the premium rates accordingly.

    Our plan provides an online premium calculator to help you estimate the premium based on your requirements, such as the sum assured, policy term, etc. Also, if you purchase the online term plan, you can also access different products, compare the features, and choose the apt product.

  2. More Sum Assured

    Life insurance term plans are affordable while also offering a huge sum assured. Term plans are pure protection plans, so the cost is based on providing the life cover and not essentially on the savings and investment benefits. Therefore, the entire investment cost is directed to offer a huge sum assured, which is the ultimate death benefit and the purpose of term plans.

    Also, with our products, you can increase the term insurance risk cover at important milestones using the Life Stage Option. For instance, you can increase the cover when you get married or blessed with children. With the huge sum assured, your family can repay your debts, pay for your child's tuition fees and use it wisely for routine expenses when you are not there.

  3. Optional Riders#



    Term insurance plans cover natural death, death due to a serious health condition, accident etc. However, if you want to enhance the term insurance pure risk protection, you can always opt for the available riders#.

    With the comprehensive protection plan, you can choose the risk covers, such as accidental death, total and permanent disability, etc. It will help you increase the death benefits by providing additional financial assistance. You will have the option to receive the benefit as a lump sum, regular income for a fixed period, waiver of future premium payments, etc.

    The comprehensive health rider# offers cover against various illnesses such as cancer, cardiac arrests, etc. It includes hospitalisation charges and other medical expenses for major or minor injuries. You can receive the enhanced protection payout as a combination of lump sum and regular income, or either as a lump sum or regular income for a fixed period.

    For instance, if you get affected due to cancer, you can receive the insured amount regularly to pay for the chemotherapy sessions. It will reduce the financial burden on your family and help you recover without compromising your term insurance benefits.

  4. Flexibility

    Term insurance pure protection plans also offer flexibility in various product features. You can choose to pay the premium monthly, semi-annually, or annually based on your steady flow of income. You can also pay the premium for a limited-term while ensuring benefits through the policy term.

    Also, the death benefit is available as a lump sum or regular income. If you feel your family cannot use a lump sum wisely in your absence, you can always opt for the regular income for a fixed period.

  5. Tax* Benefits

    Income-tax* liability becomes an issue with an increase in annual income. While offering pure protection for your family's financial future, term insurance plans help you save on tax* incredibly.

    According to the Income Tax Act, 1961, the premium amount paid for purchasing term plans qualifies for a deduction on the taxable income under Section 80C and exemption on the payout under Section 10(10D). The tax* deduction under Section 80C is allowed up to ₹1,50,000. Also, if you choose the optional health riders#, you will be eligible for additional tax* deduction benefits under Section 80D.
     
Conclusion


Term insurance policies are pure protection plans that offer more sum assured at an affordable rate to secure your family in your absence. It helps your family reduce the financial burden by paying off debts and utilising the funds for routine expenses. Also, the plan offers flexible features such as different payment modes and payout options.


In addition, various optional riders# provide additional financial assistance to enhance the protection cover. Moreover, investments in term insurance plans qualify for a tax* deduction and exemption benefits under Section 80C, Section 80D and Section 10(10D) of the Income Tax Act, 1961. So, if you are looking for pure risk protection solutions, then term insurance plans will be an ideal option!


L&C/Advt/2022/Nov/2702

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Tata AIA Life Insurance

A joint venture between Tata Sons Pvt. Ltd. and AIA Group Ltd. (AIA),  Tata AIA Life Insurance  is one of the leading life insurance providers in India. We post everything you need to know about life insurance, tax savings and a variety of lateral topics such as savings and investments in this space. You can access and read a host of different blogs, articles and pages at the Tata AIA Life Insurance Knowledge Center or get in touch with us with any queries or questions!

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Disclaimers

  • Insurance cover is available under the product.
  • The products are underwritten by Tata AIA Life Insurance Company Ltd.
  • The plans are not a guaranteed issuance plan, and it will be subject to Company’s underwriting and acceptance.
  • For more details on risk factors, terms and conditions please read the sales brochure carefully before concluding a sale.
  • This blog is for information and illustrative purposes only and does not purport to any financial or investment services and do not offer or form part of any offer or recommendation. The information is not and should not be regarded as investment advice or as a recommendation regarding any particular security or course of action.
  • Please know the associated risks and the applicable charges, from your Insurance agent or the Intermediary or policy document issued by the insurance company.
  • Every effort is made to ensure that all information contained in this blog is accurate at the date of publication, however, the Tata AIA Life shall not have any liability for any damages of any kind (including but not limited to errors and omissions) whatsoever relating to this material.
  • #Rider is not mandatory and is available for a nominal extra cost. For more details on benefits, premiums, and exclusions under the Rider, please contact Tata AIA Life's Insurance Advisor/ branch
  • *Income Tax benefits would be available as per the prevailing income tax laws, subject to fulfilment of conditions stipulated therein. Income Tax laws are subject to change from time to time. Tata AIA Life Insurance Company Ltd. does not assume responsibility on tax implications mentioned anywhere in this document. Please consult your own tax consultant to know the tax benefits available to you.