Why is it essential to buy term insurance today?

The COVID-19 pandemic has touched many lives around the world. We have all had to adapt to the new normal while witnessing the restructuring of social and economic norms. In the past, insurance policies were seen as instruments to save taxes or as alternative approaches to investments. However, as the pandemic gave way to a new normal, everyone realized the importance of protection.

Along with the importance of protection, many individuals have also realized how essential it is to have a suitable financial solution to deal with any unfortunate event. Among the various insurance plans available, the term insurance plan was one of the most optimal insurance plans for comprehensive coverage.


What is term insurance?


A term insurance plan offers the purest type of life insurance to the policyholder. Thanks to the term insurance plan, your loved ones will benefit from complete financial protection against the vagaries of life. Term insurance plans offer one of the highest levels of insurance coverage compared to other plans available in the market.

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In a term plan, the policyholder will be insured for a predefined term or period if he pays the full premium amount for the plan. If something unfortunate should happen to them during the predefined duration, their beneficiaries will receive death benefits. If they survive the term, there is no benefit payment. However, this would depend on the variant of the term insurance plan chosen. Many plans today include features such as a refund of all premiums paid as a benefit at maturity.

Why is it essential to buy term insurance today?

Of the many life insurance plans available in the country, let’s look at some of the reasons why you should buy a term plan today:

1. Financial security for your loved ones: An unfortunate event like a death can be very stressful for a family. It can also disrupt the financial stability of a home. However, with a term insurance plan in place, the beneficiaries of the policyholder will benefit from comprehensive financial coverage to maintain their financial stability.

2. Fixed premium for the duration of the contract: once your insurance company has accepted your request for a specific premium amount, your premium amount will not change for the duration of the contract. Therefore, you can rest easy knowing that there will be no price hikes at any time.

3. Low Claim Rejection: When you enroll in a term insurance plan, you must be sure to disclose all material facts about your finances, habits, health, etc. The Insurance Regulatory and Development Authority (IRDAI) states that insurance companies cannot claim “non-disclosure of facts” once the policy has been active for two years.

4. Ease of purchase: Buying term insurance in India has now become quite easy for individuals. Many insurance companies have launched their websites where individuals can purchase the plan from the comfort of their homes. With an online purchase of a term insurance plan, you also get access to different features such as calculators, discounts, etc.

Some other term insurance benefits:



1. Affordable premium amount: As the term insurance policy is a pure insurance plan with no other benefits, the premium amount is quite low compared to other insurance plans. Therefore, with term insurance plans, you can get comprehensive insurance protection at an affordable price.

2. Choice of riders for enhanced coverage: Riders are additions that can be added to term insurance plans. With the addition of a rider to the term insurance plan, you can enhance your insurance coverage. With a rider included in your plan, you will get insurance protection for a specific situation. Some of the most popular riders are Critical Illness, Accidental Death, and Permanent or Partial Disability. However, the inclusion of endorsements will result in an increase in the premium amount, depending on the endorsement chosen. Therefore, you need to select your plan riders carefully.

3. Tax Benefits Under Current Standards: Term policyholders may receive tax benefits on premiums paid into the plan pursuant to Section 80C of the Income Tax Act. If the policyholder has opted for the Critical Illness Rider, premiums paid in this regard are also eligible for tax benefits under Section 80D. The lump sum acquired by applicants as a death benefit or sum assured is also exempt from tax, in accordance with Article 10 (10D).


TATA AIA Life Insurance Sampoorna Raksha Supreme

Tata AIA Life Insurance Sampoorna Raksha Supreme plan is the latest term plan offered by the famous life insurance company Tata AIA. With this Tata AIA term plan, you get financial protection for your family and get the flexibility to choose the plan that suits your needs. Along with this, you can also increase insurance coverage at crucial stages of your life. This plan will protect the insured until he reaches the age of 100.

Summary

Among the many insurance plans, the term insurance plan is one of the best ways to protect our loved ones. With term plans, policyholders can get the most comprehensive financial protection at the lowest possible premium.


Disclaimer: This article was produced on behalf of Tata AIA Life Insurance by the Internet Times Spotlight Team.

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