Marriage not only brings companionship it also brings with it a host of responsibilities. From one, you become two and then, when you start a family, the number increases. Your spouse and your children depend on you. This dependence is both emotional and financial, whether you are a single-income family or a double-income family. In a single-income family, the whole family depends on the breadwinner’s income. If something were to happen to the breadwinner, the whole family suffers financial stress. In the case of a double-income family, there is a financial loss if either source of income is hampered. The financial plan might fall off track and cause a financial strain. To alleviate this strain a term plan becomes useful.
Term plan – the concept
A term insurance plan is a life insurance plan that covers the risk of premature death. If the insured dies during the policy tenure, the sum assured is paid which takes care of the financial strain that the family might face.
Why term insurance?
There are many reasons which make a term plan a must for your portfolio. Have a look –
If the breadwinner or an earning member of the family passes away before their time, the family suffers a considerable financial loss. Their source of income either stops or dries up which might lead to financial struggles. They might not be able to meet their goals or live a comfortable life.
A term plan helps in this regard. As the plan pays a benefit in the event of death, the family is secured of financial assistance when they need it the most. This financial assistance helps them deal with financial loss and also fulfil their goals.
As such, when you invest in a term insurance plan, you can secure your family’s financial future when you are not around.
Modern-day term plans have become quite comprehensive. You can find inbuilt riders that enhance the scope of coverage against emergencies like accidents, terminal illnesses, critical illnesses and the like.
Furthermore, the whole life option allows coverage till 99 or 100 years of age so that you can enjoy protection lifelong.
Even in the case of death, you can choose to avail of the benefit in a lump sum, in instalments or in a combination of both.
So, with the right plan, you can get protection against different emergencies and provide full security to your family.
Term plans have very low premiums. The primary reason is that the plans cover only the risk of death and usually have no savings element.
This low premium allows you to opt for a high sum assured so that you can provide adequate protection to your family.
The tax benefit sweetens the deal further. Under Section 80C, the premiums you pay qualify for a deduction. You can claim a deduction of up to Rs. 1.5 lakh and save up to Rs.45,000 in taxes (if you are in the 30% tax bracket).
Furthermore, the death benefit received is also fully tax-exempt allowing your family to make use of the full corpus.
Peace of mind
A term insurance plan gives you peace of mind with the financial security that it provides. The affordable premiums make it possible to have a high sum assured which can take care of your family’s financial needs when you are not around. Thus, by investing in a term plan you can invest in peace of mind and give your family the financial security that they deserve.
At this stage of your life when you have someone depending on you, you need to be responsible for their needs. You need to make sure that your spouse is provided for. When you are around you can take care of your better half but when you are not around you need to bank on something. A term insurance plan is something that you can fall back on.
So, opt for a comprehensive term insurance plan with an optimal sum assured and secure your family against unforeseen eventualities, eventualities over which you might have no control. To know check https://blog.oneassure.in/