Insuring your family’s future is crucial in today’s world. Investing in a term insurance plan ensures your family is financially secure in case of your absence. This article will explore the benefits of term insurance and why 1 crore term insurance is popular in India.
How is Investing in a Term Insurance Plan Beneficial for an Individual?
The following are some key advantages you and your family can receive by investing in a term insurance plan:
1. Financial Protection for Your Family
One of the main advantages of term insurance is that it provides financial coverage to your family even after you pass away. They receive the sum assured at one time or periodically.
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2. Comprehensive Financial Security
Term insurance is an affordable investment option and the simplest form of life insurance. With no investment components, premiums payable are relatively lower than those of other life insurance products. Term insurance provides higher coverage to your family.
3. Customisable and Flexible
Another benefit of a term insurance plan is that it allows you to customise your basic policy. You can include additional riders in your plan. Some of the common riders include accidental death coverage, critical illnesses, or total disability income.
4. Innovative Features
Insurance companies’ innovation has come to the fore, especially regarding term insurance plans. For instance, companies are active and proactive in reducing premium rates by offering additional discounts to particular groups of individuals, such as non-smokers. You can easily buy term insurance online by comparing the features of various companies.
5. Avail Tax Benefits
Another reason to invest in term insurance is to get tax benefits under Section 80C and Section 80D of the Income Tax Act 1961. Under Section 80C of the Income Tax Act, you can avail of deductions up to ₹. 1,50,000 per annum for the premium you have paid for the plan. Further, you can claim a deduction from tax up to ₹ 25,000 under Section 80D of the Income-tax Act, 1961, on premiums paid for term insurance with riders, such as critical illness cover.
Why is 1 Crore Term Insurance Popular in India?
A term insurance of 1 crore is a life insurance policy that gives your family financial coverage of 1 crore in your sudden demise. You must pay the premiums periodically so your family may receive monetary benefits for continuous survival in your absence. Here are a few reasons why a 1 crore term insurance plan is getting famous in India:
1. High Coverage at Minimal Premium
A 1 crore term insurance plan will enable you to protect your family financially against many insecurities. You must pay only a few easily affordable premiums at regular time intervals for your family to receive the high coverage amount.
2. Financial Security
A 1 crore term insurance plan empowers you to enjoy the highest protection available to your family and loved ones against your untimely demise. It is the best life insurance policy for a woman in India, as your family can use the sum assured to meet their financial goals.
3. Flexible Payout Options
The 1 crore term insurance plan offers flexible options to pay the sum assured. You can choose a lump sum, regular income, or both options combined, whichever is convenient. Your family can file a claim and opt for the payout in your absence.
- Include Additional Riders
A 1 crore term insurance plan allows additional riders to be added to the policy. Additional riders enhance the amount of term insurance coverage so your family does not have to go through any financial difficulties.
5. Pay Off Debts and Other Liabilities
Buying a 1 crore insurance plan will secure your family’s financial future. After your demise, they can use this coverage to pay off outstanding debts and other financial liabilities.
Final Words
Securing your family’s financial future is critical. A 1 crore term insurance policy gives you immense peace of mind, knowing your loved ones are financially protected in case of your sudden demise. Besides its financial protection, you can save on taxes under Section 80C and Section 80D of the Income Tax Act 1961.
