26-year-old Rohan had always been very careful about money matters. When he got a promotion at work, just months before his marriage, he knew he needed to make a very important investment so, he immediately got a term life insurance plan. This was a wise move as not only did Rohan manage to secure his life, but he also got a host of other benefits like tax rebates and an overall financial cushion for his family. If you are also looking to make your financial portfolio strong and healthy, get a term plan right away. Read on to know more.
How does term insurance give you a healthy financial portfolio?
Here are some ways in which term insurance allows you to have a healthy financial portfolio:
- Very reasonably priced
The term insurance plans in India are very reasonably priced. You can use a term insurance premium calculator when buying a policy to understand the cost. This will help you to get a good plan in your budget. Term insurance is one of the most affordable forms of life insurance. This is mainly because it offers plain-vanilla coverage without any frills, and does the job beautifully. If you want to have comprehensive life insurance coverage without spending a lot of money, term insurance would be ideal for you.
- Tax benefit
You can get a handy tax benefit when you invest in term insurance. You can get a tax benefit of up to INR 1.5 lakhs a year under Section 80 C of the Indian Income Tax Act for the term insurance premium you pay. This is an excellent and very smart way to save tax and a solid reason why you must include term insurance in your financial portfolio.
- Financial cushion
As the primary breadwinner of the family, it is your duty and responsibility to care for the members of your family like your spouse, kids and parents. If you die unexpectedly, you need to ensure they don’t suffer financially. For this, you need to build up a healthy corpus and term insurance allows you to do so. You can choose coverage energy large enough to protect your family in case you die and your regular income stops.
- Different modes of payout
A huge benefit of term insurance is that it allows you to choose the payout mode easily. After you are gone, your family should be able to use the money effectively. You can choose a lump sum payout or a staggered payout. If your family members are financially well-versed and sound, they can handle a lump sum payout. However, if you have old parents who can’t do so, you can opt for a staggered payout where the sum assured will be broken up into instalments and paid out in regular instalments. Choose the option that would benefit your family.
- Add-on covers
You can add some handy riders to your term insurance plan such as the critical illness rider and the accidental death benefit rider, among others. This is a very good feature of term insurance and allows you to customise your life insurance plan as per your exact needs and requirements.
- Easy to have
Term insurance is widely available in India. Many of the leading life insurance companies offer online term insurance plans, which you can purchase instantly if you are young and healthy. Else, you may need a small health check which also happens conveniently. You can pay further premiums, check the status of your plan, make claims, etc online which is very helpful and another reason why you must get term insurance.
As you can see, there are some excellent ways in which a term life insurance policy can help improve your financial portfolio, so go and get a good plan from a good insurer right away.
Conclusion
Term insurance has become a necessity these days. It also adds tremendous value to your financial portfolio and that is a great reason why you must invest in it. Thankfully there are some excellent life insurance companies in India and all of them offer term insurance covers. Do your research and find the best plan at the best rate. Keep your life covered, save tax and also enjoy the benefits of the add-on covers. Term insurance is an asset that must find a permanent place in your financial portfolio.
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