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