Is Term Life Insurance Worth Investing In?

by Jeny Smith Term insurance

Did you know that our country has some of the lowest numbers when it comes to the people who invest in life insurance plans? Well, we wish we could change that since life insurance is one of the most efficient ways to ensure financial security. While there are numerous types of life insurance plans you can choose from, term life insurance is one of the most popular of them all. Term life insurance is one of the simplest forms of insurance wherein the policyholder pays regular premiums to the insurance company to keep the insurance active. And if the insured individual were to die during the tenure of the insurance plan, the coverage amount will be paid to the nominee after a claim has been filed and approved.

Term insurance is also one of the most cost-effective life insurance plans out there. This is because when you choose a term life insurance plan, it offers only death benefits. There are no maturity benefits involved. This means, when the policy tenure is over, the policyholder gets no money. This policy only pays your nominees if something were to happen to you during the policy tenure. And since there are no maturity benefits, a lot of people wonder is term life insurance worth it. Well, if you ask us, we think it is absolutely worth it. And mentioned below are some of the reasons that make it so.

Financial stability to your family in your absence
The death of the breadwinner of the family can be a bit of a shocker for the family. Not only will they suffer mentally but there is a very good chance they may also suffer financially. When you opt for a term insurance plan, you secure their financial future.

High coverage amount, low premiums
As we mentioned earlier, term life insurance comes with no maturity benefits. This is why the coverage amount offered by a term insurance plan is higher than that of a regular plan. And the premium amounts are also lower in comparison, making this the ideal plan to choose if you are worried about your budget.

Additional riders
Term insurance plans offer you the option of adding additional riders to your plan. These riders offer added benefits and are charged additionally apart from your premiums.

Tax benefits
And lastly, according to the Income Tax Act in our country, up to 1.5 lakhs of premiums that you pay towards your policy premiums can be exempted from your taxable income.

We hope this convinces you that term insurance plans are completely worth it.