We all love our families unconditionally and want to give them the best, right?
But, with the uncertainties of life, it is never known how much we can contribute towards the life-long safety, security, and happiness of our family.
Yet, there is hope. Hope in form of Term Insurance Plans, that offer a secure future to your family after you die.
Here, we are going to discuss in details, why your family needs a term insurance plan from you before you die:
Your Family Receives Death Benefits
In your absence, your family needs to survive on their own, and the sum assured as the proceeds of term insurance death benefits, comes in handy for this survival. You just need to make a nominee in your policy, who shall receive these benefits. It can be your spouse, your kids, or an alive parent.
Your Family’s Future Protection Is Assured
When you are not around and you leave a term insurance plan behind, the assured sum that the family receives helps to take care of children’s future education, medical contingencies, marriages and many other upcoming expenses.
Your Family Gets The Maximum Coverage At Lowest Premiums
Term Plan brings the advantage of insurance for a sum as big as Rs. 1 Crore at an annual premium amount as little as Rs. 10,000/-. This kind of huge coverage can replace your income for your family, in your absence. They are relieved of any stress due to unpaid debts and can take care of many future obligations, in case of your untimely demise.
Your Family Gets Tax Free Benefits
You pay taxes when you are alive. But in the event of untimely death, your family may not be able to bear the burden of taxes, along with emotional trauma and financial hardships that they will have to go through. Hence a term plan brings a financial cover which is free of any taxes. The proceeds of term insurance plans are tax exempted under section 80C.
Your Family Won’t Have To Fight For Timely Payout
Most of the term insurance policies are pretty simple and therefore the insurance companies don’t have to debate a lot about paying up the claims. If there is death during the term of the policy and there are no suspicious circumstances surrounding the same, the family gets the insurance claims easily without any hassles.
Your Family Won’t Have To Face A Rejection
If a term plan is active of 10 years or more, there are almost negligible chances that the insurance claim can get rejected and the family won’t receive anything. Also, as per IRDA guidelines, if the insured has made all disclosures, the company can’t reject the claims basis non-disclosure if the policy is in effect for two consecutive years. Therefore, it is advisable to buy a term at the earliest.
Your Family Can Further Be Benefitted Of Riders
Term Plans come with an option of availing riders (add-ons). Some of the important riders offered by term plans are critical illness cover, accidental death benefit, permanent or partial disability cover etc. which bring additional security to the family in case you face a critical illness or a physical disability. The loss of income for your family is covered in such grave situations, through a well-structured term insurance plan.
Term Insurance Plans are crucial for your family in today’s age and times. They are the crucial instruments to cover the financial risks and provide a warm blanket to mourning family after you leave them forever.