When we think about buying insurance, the first things that perhaps cross our mind are security and protection. The sense of security may vary depending upon one’s needs, and so does insurance plans. But in a world full of unlimited choices where uncertainties make their presence felt at every moment in your mind, what insurance will you opt for? Well, how about if you constrained your thought to have a term insurance plan?
A term insurance plan is designed to give one peace of mind by ensuring that his family is financially secure and independent. These are even applicable on one’s absence. The policyholder has to pay a specific premium amount at fixed intervals during the policy period. In the case of one’s unfortunate demise, their nominee will receive the assured amount during the policy term, provided it is mentioned in the plan. To make a better choice, you can check out the best term insurance plan by Turtlement.
The Term insurance plan, which is juxtaposed with a fixed period of time derived its name for its referencing of a specific time period. It is also a form of life insurance. The basic concept of this plan revolves around the fact that it will protect your family even when you are no longer around.
How To Determine The Best Term Insurance Plan?
You can only make the best choice only when you know your requirements. So, in case of choosing the best term insurance plan assess your following needs and then determine what suits you best. Here is a guide that you can follow in order to determine the best term insurance plan.
Are you looking for a simple term insurance plan?
If it’s all about opting for the ‘plain vanilla’ then, choose a plan with a single premium. These offer your family with the assured coverage with lump sum amount even at your sudden death.
Want an additional benefit of accidental coverage?
If you are looking for a policy that can provide some extra privilege then, you can opt for this plan. The additional benefit in this plan comes in the form of accidental coverage. Availing this will help you get coverage against uncertainties and that also at a benefit of low cost. Also, you get the privileges and coverage of the primary term insurance plan.
If you have a health issue then it can come to your aid
Now this policy can be beneficial to you if you have a long history of family illness. Contrary to health insurance which only compensates one’s medical expense, this gives you coverage against critical health issues, provided, you have a critical illness rider on your term insurance plan to avail this benefit.
A source of income for your family even after death
All your life you have worked hard to support your family. But after all, we are humans, so we have a sudden attachment. So, one always looks for coverage that could give them that source of income even after death. So, term insurance can be your best choice as it gives you the option of availing the benefit of getting a steady flow of income for your family even after death. However, you have to ensure that your policy is free from income tax.
Why pay a high premium when you are about to retire?
Most of the people are aware of the fact that the cost of the premium is synonymous to age. At the age of retirement, it is practical to guard your savings and look for a plan that suits your needs. The term insurance plan is suitable no matter to what age group you belong because it gives you flexibility when it comes to having an ideal plan. It’s the flexibility of this term insurance plan that saves one from paying a higher or lower premium.
How can the term insurance plan help you in saving tax?
The primary thing that drives the term insurance plan is its benefit on tax savings. It is also termed as a tax savings instrument for the following reasons:
- Benefits under section 80C – This section exempts tax for a term insurer for a life insurance premium up to Rs.1.5 lakh per annum under the Indian Income Tax Act.
- Benefits under section 10 (10D) – This section helps you to save tax on filing return, and the maturity amount on death benefit can be received fully.
Your choice can make a difference in availing the best term insurance plan
In short, you have a very short life span, and the decision you make right now can make a difference in the future. Term insurance plan is best for what it provides but its only your choice that can help you in making a more significant difference. Overall, it’s not just a tax saving instrument but can also be a lifesaver in times of your crisis.