Monday , August 2 2021

Answering Your Insurance Related Questions: Is Term Plan For You?

Earlier, people saw insurance often as a waste of money or an unnecessary expense. If it were not for the tax benefit that most individuals needed to claim against their earnings, they wouldn’t even consider buying a life insurance policy in most cases. Most of the time, people often believed that a term insurance plan might not be for them.

However, with the growing number of accidents and deaths due to critical illnesses and in the wake of the raging pandemic, people all over the world have felt the dire need to have an insurance policy in their name.

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A term insurance plan is one of the best investment options out there to help you secure your family’s finances in the future. You can help your family stay calm during such unforeseen circumstances and feel secure financially by opting for a term insurance policy. More and more people have slowly started changing how they felt about an insurance plan in the past and adopting term insurance covers to help them find stability and mental peace.

Who Should Be Considering Buying Term Insurance?

Ideally, every individual needs to have a term insurance policy, especially if they are the breadwinners in their family. You can be in your early twenties, recently married, or in your forties with children to look after; either way, a term plan bought at any stage in your life will prove beneficial in the long run. The key to creating a good financial plan is investing in the right instruments to build wealth and buying the best term plan that can secure your present and your family’s future.

There isn’t any set age for buying a term plan but the earlier you make this decision, the more benefits you can get out of it. From an accidental cover to a waiver of premiums and from survival benefit option to saving on your taxes by claiming deductions, a term insurance plan works in more ways than one. Take this step towards securing your family’s future even in your absence and live your life without any worries.

Why Do You Need To Opt For A Term Insurance Policy?

Amidst the global crisis that has occurred in recent times, it was the people with secured investments and term insurance plans who survived the pandemic and faced minimal financial troubles. Investing in the best term plan your money can buy provides assurance to your family members that they are not alone during a crisis and that they will be taken care of even in your absence. Here are a few benefits that you can get from the best term plan:

  1. The lump-sum received from this policy can work as a salary replacement for the family if their loved one, i.e., the policyholder, passes away.
  2. A term insurance policy offers a cover that can ensure a debt-free future for the family of the deceased if it has been planned aptly.
  3. Additional riders of the term insurance policy, like critical illness cover, death benefit, waiver of premium and survival benefit, to name a few, also help in customising the policy to suit policyholders and their families accordingly.


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  1. The policyholder also gets to claim tax benefits on the premiums paid every year.
  2. The sum assured that beneficiaries of the term insurance plan receive are generally tax-free.
  3. With the survival benefit option that is available on term insurance with return of premium, you can even avail of the annualised premium in return

Remember, the best term insurance policy coupled with a diversified investment portfolio will help you in creating a strong financial plan for yourself and a backup for your family.

If you know what is term plan, then you must also have a fairly good idea of the role it plays in your life. Be it to protect yourself in uncertain times or to financially secure your loved ones in your absence, a term insurance policy can help you with all of that and more.

How To Buy A Term Insurance Policy?

Everything nowadays is accessible with the click of a button, and you will be happy to know that insurance plans can also be bought online! You can find term insurance policies of many insurers on their website itself.

If you want to calculate your premiums to determine the payment frequency and know how much tax benefit can be availed, then an insurance calculator is an ideal tool for you. Online calculators can easily offer you an estimate of your term insurance premiums, which will further help in deciding between a monthly, quarterly, or yearly payment frequency.

Besides this, you can also use an income tax calculator to help you understand your taxable amount and how to claim a deduction against your term insurance premiums. You can claim this tax benefit on a yearly basis, as long as your policy term has not expired. Remember to always choose the best term plan for your family, and gift them a worry-free and financially independent future.

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