Reasons To Buy Term Insurance

by Jeny Smith Term insurance

There is very little doubt that most of us have dreams to achieve and half of them revolve around providing a better future for our families. However, life can at times be very cruel and unpredictable. Some of us may have our dreams snatched away from us due to unfortunate circumstances. The mere thought of our loved ones struggling financially in our absence is enough to get us thinking about ways to prevent that. And the perfect solution for this problem is to invest in a term insurance plan.

Term insurance is a form of pure insurance that provides death benefits to the beneficiary in case of the untimely demise of the policyholder during the policy term. Despite all this, a lot of people are not too keen on buying a term insurance plan. When asked for the reason behind this, they say why to buy term insurance when there aren’t any maturity benefits to the plan. We understand the skepticism. But we want you to know that there are many other reasons to invest in a term insurance plan. And mentioned below are a few of those reasons.

Affordability
Given our changing lifestyle, our expenses are increasing too. And in such a scenario, it is always better to opt for an insurance plan where the premium isn’t too much to afford. Term insurance is just for you. Due to the fact that there are no maturity benefits involved, the premiums for term insurance are quite affordable.

Financial security for your family
The best thing about term insurance is that it allows you to carry on with your life peacefully. You can rest assured that the financial future of your family will be secured even in your absence.

Additional riders
There are numerous additional riders that you can add to your insurance plan. These riders make your policy more lucrative and offer more benefits. However, they come at an extra cost.

Tax benefits
Investing in term insurance is also good for you because it offers you tax benefits. According to Section 80C of the Income Tax Act, 1961, up to 1.5 lakhs of premiums paid towards your policy can be exempted from taxable income.

Who should buy term insurance plans?

Ideally, everyone should consider buying term insurance. However, if you are the sole breadwinner of the family, if you have too many financial liabilities like loans and debts, or if you have elderly parents to take care of.

We hope this article proves useful to you and encourages you to invest in a term insurance policy.