Life insurance is important for all. It helps you to secure your family financially in case of happening. Term insurance plans are considered to be one of the most important plan as it not only offers high coverage at an affordable but also tax benefits. Let's look at the benefits of term life insurance.
Multiple payout option
You may be paying the EMIs of your various loan, and in your absense, it will fall onto your family. It is where the payout option comes in. Your nominee will get a lump sum amount in case of any unfortunate demise.
Additional protection with covers
Term insurance plans allows you to purchase riders along with your basic plan. You can add these riders to your term insurance policy by paying a nominal premium and get additional financial protection.
Return of premium
With this, you get the return of premium option, the insurer pays back the premium at the end of policy term if you survive till the policy tenure. However, it doesn't include any taxes, rider premium, model amount paid, and levies.
Income tax benefits
Term insurance plans provides tax benefits too. The premium is eligible for tax benefits up to Rs 1.5 lakh in a financial year as per the existing tax laws.
The most significant benefit is the most affordable premium. It is available at a premium that you can easily afford. Another important benefit is that the earlier you buy the term insurance, the lower will be the premium.