It is paramount to take care of unforeseen happenings. This ensures your family is well catered for if disability, critical illness or death occurs to the policyholder during the term of the policy. As the provider of your family, you are guaranteed that they will have money to take of themselves when you aren’t able to do that.
What To Consider Before Taking Term Plan?
- Assess Your family’s needs
- Make a Budget
- Take Stock of Your Health & Lifestyle
- Provision for Inflation
- Consider the time factor
6 Reasons Why You Should You Get A Term Plan Online?
Term insurance policies offer the highest life cover for the lowest premium amount among all insurance plans in India. The sooner you buy a term plan the cheaper will be your premiums and the higher your payout.
It is Economical
You can purchase a term plan online. This reduces the amount of time and cost you spend going to the insurance office. You may also choose to get the cover earlier in your life as it will be more economical with less premiums. The premiums are also calculated and set into sizable amounts you pay periodically. During payout the amount may be paid in lump sum or in monthly installments. This depends on what you chose at the contract inception stage.
Financial Security benefit
Every aspect in life needs to be fueled by money. Expenses may hit the roof if the provider is struck by an unfortunate happening. However, this should not be the case when you purchase term insurance. The payout will ensure that your family is taken care of as they plan for the future.
Provides Tax Benefit
All premiums are exempt from tax under Section 80C. This allows you a saving when paying for your taxes. Subject to conditions under Section 10(10D) of the Income Tax Act, 1961. The maturity amount is also tax-exempt and thus you also save some money.
Safe and secure payments: When you buy a term plan online, you can make payments safely through the bank deposits or any other online modes of payment.
As the policyholder, you select how the payout will be made to your dependents. You may choose for them to get a lump sum, or to get monthly payments.
Riders enhance your term plan with benefits. This makes your policy more robust. They may be like accident cover, critical illness cover, among others. With this, your family may be able to maintain their needs as they try to put their fit on the ground.
Provided the nominee has done all the claim prerequisite procedures then the payout is simple. The term plan is one of the best insurance plans in India in the year 2020. Insurance companies do not dispute payments to the nominees. When death happens during the life of the policy, the nominee initiates claim and they get the money. IRDAI’s Insurance Laws (Amendment) Act 2015 also makes it mandatory for life insurance companies to pay all claims made three years after the date of commencement of a policy.