Is it Worth to Buy Term Insurance?

New Delhi : Insurance acts as a reassuring safety net when it comes to safeguarding your financial future. The right insurance coverage shields you and your family from unexpected incidents, providing that crucial financial safety net you can always rely on. Not only that, but insurance can also add some predictability to your legacy and estate plan and serve as a means to diversify your investment portfolio, introduce some stability, and lower your tax liabilities.

But which insurance is the best one for you?

With so many options before us, choosing the best one for us gets extremely confusing. However, term insurance, in particular, is a basic yet important type of insurance that provides financial help to your family if something happens to you. It offers death benefits to the beneficiaries if the insured passes away during the term.

The India Protection Quotient (IPQ) survey four shows that the ownership of term insurance among Indians has increased to 43 per cent, up from 39 per cent last year.

The best part is that you can easily buy an Online Term Plan with the internet. This makes it super convenient and straightforward to ensure your family is financially protected. This introduction discusses why insurance matters for your finances and how easy it is to get term insurance online.

Benefits of Term Insurance

 

Apart from benefits like long-term protection and tax-saving benefits, here are some other benefits of term life insurance:

Affordable Premiums: Term policies provide extensive life insurance coverage at affordable prices.

Return of Premium Options: Some plans offer a maturity benefit if you survive the entire tenure, returning all the premiums paid.

Death Benefits: Term insurance ensures that the policyholder’s nominee(s) receive the sum assured in the unfortunate event of the policyholder’s demise during the term.

Additional Riders: Term insurance plans often include optional additional riders that offer supplementary coverage on top of the existing plan benefits. These riders can provide coverage for critical illness, accidental disability, and more, enhancing the overall benefits of the plan.

Premium Payment Flexibility: Term plans offer flexible premium payment options to policyholders. They can pay monthly, bi-annual, or annual premiums or even make a one-time lump sum payment, according to their convenience.

Income Tax Benefits: Term plans provide tax benefits to policyholders. The premiums paid and the main plan benefits, including the sum assured and maturity proceeds, are eligible for tax exemption under Sections 80C, 80D and 10D of the Income Tax Act, 1961.

 

Considerations for Buying Term Insurance

The contribution of term insurance toward your family’s financial security is unmatchable. However, there are a few things to consider when buying a term insurance:

Check Claim-Settlement Ratios: Examine an insurer’s Individual Death Claim Settlement Ratio online, like HDFC Life’s impressive 99.39 % in the year 2022 – 23.

Confirm Solvency: Ensure insurers meet the IRDAI’s minimum solvency requirement of 1.5.

Match Your Needs: Use a term insurance calculator to assess if your chosen coverage amount aligns with your family’s needs.

Explore Benefits: Compare policies for superior advantages, including maturity benefits, payment flexibility, and payout choices.

Add Riders: Consider extra coverage like critical illness and accidental disability for added security.

Flexible Payouts: Choose plans with payout options aligned with your financial goals, such as monthly payouts.

Online Accessibility: Opt for insurers with 24×7 online chat support and easy online claims filing for convenience and speed.

Comparing Online Term Plans for the Best Deal: When comparing online term plans for the best deal, focus on the following key factors to make the appropriate decision:

Coverage Amount: Assess the coverage offered by different plans. Ensure it matches your family’s financial needs and future obligations.

Policy Duration: Consider the policy term carefully. Longer terms can provide more comprehensive protection but may come at a slightly higher cost.

Premium Affordability: Online term plans generally offer competitive premiums. Compare quotes to find an affordable option that fits your budget.

Riders: Check for optional riders like critical illness or accidental death coverage to enhance your plan’s benefits.

Insurer Reputation: Choose a reputable insurer known for reliable customer service and prompt claim processing.

Customer Reviews: Read customer feedback and reviews to gauge overall satisfaction and experiences with the insurer.

 

Conclusion

Term insurance offers several key benefits. It provides financial security for your loved ones in case of your untimely demise, ensures predictability in legacy planning, and is cost-effective, especially when obtained online. So, consider the affordability and comprehensiveness of these online term plans, along with additional riders for enhanced coverage and opt for a term plan today!