After the incident of 26/11 in Mumbai, I was sure that nobody’s future is certain. Anything can happen anytime to anybody. What would happen if I die suddenly? Rahul told to his wife who was speaking to him on a phone call while commuting in a local train from Thane to Vashi.
“My childhood friend died in the attacks of 26/11 leaving his wife and children behind. Did the people on the CST station know that was the last day of their life? Did the people staying in the Taj Hotel knew that they will be attacked by terrorists?”
“No”, she answered.
Rahul further added, “What will happen to our child’s education when I am not there? How will you run the household and juggle the responsibilities of child education alone? Who will pay if any urgent medical emergency occurs in the future? Life changes in the blink of an eye. Our savings and investment money might not help our family for a long time.”
“A feasible alternative solution for our family’s future is to buy a term plan. It is the only way to shield the future of your loved ones in our absence. It can protect our family from the dangers of financial uncertainty cast a defensive system around them with a term insurance plan without any delay.”
Rahul then explained, “A term plan is a life insurance plan that pays a sum assured to our loved ones in the event of the ill-fated demise of the policyholder.
There are numerous benefits of a term plan:
- It is one of the most affordable insurance products:
Term insurance plans solely provide death benefit i.e. it caters to the need for protection. The premiums for term insurance are the lowest among all insurance products in India. The premium is of a term plan is lower than the price of a pizza! By paying such a low premium amount, you can safeguard your family’s future manifold.
- Higher sum assured amounts across all insurance products:
In term insurance the premium payment is low, but the sum assured is quite high. One has to pay just a few thousands annually to get a life cover of Rs 1 crore. You can have peace of mind that this money can help your family tide over its future expenses contentedly.
- Benefits your family in your absence:
The idea of buying a term insurance plan is that it acts as an income replacement in your absence. It should take care of all the outstanding bills, EMIs, and household expenses. Expenses will continue unabated even in your absence. With a term insurance plan, your spouse can maintain the house, your children’s education and other utility and medical expenses.
- Easy to buy.
Buying a term insurance plan is very easy as most leading insurance providers in India offer customers the chance to buy term insurance online. You can compare the premium of various term plans from different websites and choose a plan that is suitable for you.
- It gives tax benefits as well.
The premiums paid for the term plan offers tax benefits up to Rs 1.5 lakh per annum under Section 80C of the Income Tax Act 1961. Also, the death benefit i.e. the sum assured paid to your nominee (in case of unfortunate death) is tax-exempted under Section 10 (10D) of the Income Tax Act 1961.
Rahul then decided to research the best term insurance policies online before opting for the most suitable one. He took this wise decision because he was aware that the first step towards financial independence for your loved ones in the future is buying a term plan.