Managing unique financial requirements like home loans, retirement savings, ensuring your children’s well-being, etc., can be done seamlessly. Want to know how? Equipping yourself with the power of knowledge about the right financial tool and its benefits helps you manage such tricky situations.
A term life insurance policy is a simple and effective way to take care of one’s family finances. Let us explore why investing in such a policy is a wise decision.
Benefits of Term Life Insurance
Term insurance is a smart move for financial security, but it has several other benefits also that not many know about. Here are a few of the benefits of term insurance:
1. Affordable Protection
Term plan gives its policyholders a premium payment option of 30 years with great coverage at lower rates. You only pay rates for the life cover with no investment components and get adequate protection without digging deep into your wallet.
2. Flexible Coverage
The term life insurance policy can be availed for 10 to 30 years. Select a term to suit your needs and your family’s requirements simultaneously. Since policy terms are also dependent on your financial position, remember to consider such factors.
3. Legacy Building
Selecting the best term life insurance policy will allow you to leave a large sum for your loved ones. If the policy terminates due to an unfortunate scenario, the insured amount can then be realised for several purposes. Education of your children or leaving a lump sum for any charitable cause are two ways of using life insurance to leave behind a legacy.
4. Riders for Enhanced Protection
Term insurance policies are also known for offering additional coverage. There are different types of riders, such as critical illness, accidental disability, or waiver of premium. Your insurance policy would cover things that you might need.
5. Tax Benefits
The Income Tax Act also provides for savings through tax deductions. Under most circumstances, you can deduct your term life insurance premiums from taxable income up to a specified limit. If you hold a policy and make regular payments out of salary, Section 80C can help reduce this taxable income accordingly.
6. Easy to Understand and Purchase
Term life insurance policies are straightforward compared to some other complex financial products. The terms and conditions are well-defined, so you can see what you are getting. Moreover, term plans are also easy to buy as they can be easily found online.
When to Invest in Insurance Plans?
Anyone can buy a term life insurance policy, but opting for it at the right time is important. Here is when you must invest in one:
1. Young Individuals
As a young individual, it’s important to consider your responsibilities towards both you and your parents. If your parents are nearing retirement, you can opt for an increasing term plan, as the cover amount continues to increase automatically.
2. Newly Married
After getting married, your priorities will shift. You can opt for a term insurance plan, which allows you to increase your coverage based on specific life events like childbirth.
3. People Planning to Retire
Planning for retirement should start early in life. Ideally, as soon as you start working, you should begin saving money that will come in handy during your retirement.
Choose Your Best Term Life Insurance Policy Today!
So, with all these advantages, it’s an investment to be noticed. You can always pick an insurance company like Canara HSBC Life Insurance to make your finances more secure.
Their term plans offer life-long coverage amount, accidental death, critical illness benefits, and many other benefits. What makes them stand out is that all this is available at affordable premium rates and for longer terms.
Don’t wait any longer, ensure that your family is taken care of with Canara HSBC Life Insurance today!