Term insurance is specially designed to provide financial safety to the family and dependents during unfortunate and untimely demise of the policy holder. Paying back the Sum Assured in lump sum to the nominee or beneficiary, it ensures that the family’s financial goals are still met despite the physical absence of the bread-winner.
Term Insurance Plan offers numerous benefits including:
- Family Safety: In case of bread winners of the family, a term plan promises financial safety in case of any untoward happening to the insured.
- Eases Repayment of Huge Debts: In case a person has incurred huge debts, the repayment responsibility shifty automatically on the family. Lump sum payment received as a claim for a life term policy eases the financial stress and ensures timely repayments.
- Extensive Cover at Low Rates: A term insurance plan is the cheapest way to replace lost potential income. It offers extensive life cover at almost negligible rates.
- Tax Benefits: All premiums paid and claims received under a term insurance plan are exempted under Section 80C and Section 10(10D) respectively of the Income Tax Act 1961.