If you are wondering whether a term plan is beneficial for you, just read on. You’ll get to know 6 top reasons why term plans are beneficial to you. After reading, you’ll be convinced that buying a term plan is beneficial to you
1. Financial security for your family
Term plans offer financial security for your family. In the event of you meeting with an untimely demise, you family will get a fixed payout either in lumpsum or in monthly instalments. This will reassure you that in your absence, your spouse and family will not be burdened by financial hardships of paying for financial liabilities like utility bills, children’s school fees etc.
2. No dependency on debts
In your absence, your family will not have to depend on debts to sustain themselves. They need not borrow from moneylenders or from relatives for sustaining themselves. They can depend on the amount that they will receive from the life insurance company.
3. Medical expenses of ageing parents
If you have ageing parents, you would need funds to look after their well-being, especially their medical expenses. If your spouse is working, the said income may not suffice to look after the family as well as your ageing parents. Hence, a term plan would come in handy for you. With the payout that your family would receive from the term policy, your family can manage the medical expenses.
4. No pressure on your spouse to start earning
If your spouse has been a homemaker most her life and she has small children to look after, it would make sense for her to not pressurise herself to take up an occupation. She would need time to settle down after the bereavement. She would also need to stabilise things at home with now she becoming the head of the household. Also, since she may have been out of working mode for a long period, it might take a while for her to get a job. Also, with the Sum Assured she can start a small business of her own which will give her the independence to work according to her own timings and also look after the kids.
5. Tax savings
For you, buying a term plan means saving on your tax burden. The money that you pay as premium regularly is deducted from your taxable income under section 80C of the Income Tax Act,1961.Also, the payout that your family will receive is exempt under section 10D of the same Act. So, you get to save on your tax burden also.
6. Greater Sum Assured at lesser cost
Considering other life insurance policies like endowment plans and ULIPs, term plans provide much more cover at approximately half the premium. Although term plans do not provide any maturity benefit, but its a good avenue to keep your family covered against the risk of your life at a cheaper rate.
So, generate a quote today for a term life plan online and secure your family and loved one for any unforeseen event.