if you die, term insurance helps to secure your family financially. term insurance is considered one of the most important types of life insurance that should be done by every person in today’s time. term insurance not only provides financial security to your family in the most unfortunate events but also gives you tax benefits. not only that, you can find various other benefits available with the term plan. see the benefits of term insurance below.
What are the benefits of term insurance?
the list of benefits that may be available to you from a term insurance policy is as follows:
- high sum assured (high sum assured) on affordable premium
- easy to understand
- multiple death benefit payout option (option)
- additional raiders
- income tax benefit
- critical illness (critical illness) coverage
- accidental death benefit coverage
- option to refund premium
let’s discuss in detail about the term insurance benefits mentioned above.
1. high sum assured on affordable premium/ premium high sum assured
term insurance plan is an easy type of life insurance (life insurance). one of the major benefits of term insurance is its affordable price. a term insurance plan becomes available at a premium compared to other life insurance policies that you can easily afford. another important benefit of term insurance is that the earlier you buy term insurance, the lower its premium will be.
not only that, when you buy term insurance online its premium can be lower than offline. in other words, the expenses that are saved at the end of the insurer are given to you as a benefit of the term insurance plan. you can also check out term insurance benefits online immediately.
2. Easy to understand
while buying a life cover, you may find it difficult to understand the special terms associated with insurance about various life insurance policies. one of the key features of term insurance is that these are quite easy to understand.
as a pure life cover, the term insurance plan does not have any investment component (part of the investment). you pay premiums and the insurer covers your life for a certain time to offer term insurance benefits.
3. Multiple death benefit payout option (option)
you will be paying emi for your new home, car, or personal loan taken. in your absence, your financial obligations may fall on your family members. this is where the various payout options of term insurance play an important role.
in case of your unfortunate death, your dependents may get a lump sum amount and this lump sum amount will help them manage the financial obligations mentioned above.
some term insurance policies also offer the option to get a monthly income with a lump sum amount as death benefit. with this monthly income it can be easier for your family to manage for regular expenses.
4. Additional raiders to strengthen the policy
Term insurance plans come with many raiders that you can choose to increase the basic term insurance benefit. by paying an extremely nominal premium you can associate these raiders with your term insurance plan.
for example, in case of disembarment (amputation) and if you are diagnosed with any of the serious illnesses depicted max life insurance’s max life waver of premium plus ryder waives you payment of all future premiums. this means that even when you are not able to pay the premium of your policy, your life cover will continue.
5. Income tax benefit
term insurance plans also offer tax benefits. while on the one hand, the premium you pay for the term insurance plan gives tax deduction, according to the current tax law, the payment of payouts i.e. benefits is also exempted from tax.
term insurance benefit under section 80c under section 80c of the income tax act, 1961, the premium paid by you for buying a term insurance is exempted to the extent of rs. 1.5 lakh in a year. under this section, you can get maximum term insurance tax benefits by purchasing a plan for maximum coverage offered on the basis of your age and health.
term insurance benefit under section 10(10d) as per the provisions under section 10(10d) of the income tax act, 1961, the death benefit of term insurance is completely exempted.
6. Critical illness (critical illness) coverage
in any phase of life you can suffer from serious illnesses and all your savings in getting the necessary treatment may be over. even though the major benefits of the term insurance plan offer only life cover, you can get coverage for serious illnesses by opting for add-ons/raiders.
along with two variants of term insurance plan- max life online term plan plus (uin: 104n092v04, non linked non-participating individual risk premium life insurance plan) and max life smart term plan (uin: 104n113v03, non linked non-participating individual pay risk premium life insurance plan) max life insurance offers critical illness raiders. under the critical illness cover you will receive a lump sum amount if you are found suffering from serious illness covered by the policy.