The well-being of your loved ones may never leave your mind, isn’t it? Well, there are several ways to ensure that, but financial security is one of the most important things here. After all, it is a crucial resource that offers peace of mind even though you live far from them.
Here, a term insurance plan can bring all the right solutions to your table. Wondering how? Let’s understand what is a term insurance plan and how it helps secure the future of your family members.
Understanding What is a Term Insurance Plan
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Well, a term insurance plan is the answer to all your financial stress. In the event of an unfortunate incident, this plan gives your family a secured sum in one lump sum. It is given to the beneficiaries as a death benefit. This amount will enable your family to pay the bills and even cover significant debt such as car or home loans.
Why Should You Opt for a Term Insurance Plan?
Term insurance plans are widely assumed to be purely life coverage plans. Well, let’s break this myth by briefly explaining other benefits of term insurance:
- Get a Whole Life Cover: You don’t have to think twice before buying term insurance if you truly know what is a term insurance plan. Well, not many policyholders know that it is of two types: regular term plan and whole life plan. This means you have the option to get assured coverage benefits till the age of 99.
- Affordable Premium: Term insurance meaning is generally viewed as an expensive plan because it provides life coverage. On the other hand, it is one of the most pocket-friendly insurance plans that you may invest in. With a term insurance plan, you can easily get higher returns on lower premiums. This means that you won’t need to think about the cost and can easily get basic life cover.
- Tax Benefits: When you understand what is a term insurance plan, you will get to know that it is more than a life cover plan. Yes, these are the kinds of investments for which you can claim tax deductions. Under the Income Tax Act 1961, there are different Sections like 80C, 10(10D), etc. By leveraging these provisions, you may save up to ₹1.5 lakhs every financial year.
- Rider Add-ons: In addition to regular insurance benefits, a term plan proves beneficial in view of providing financial security with rider perks. They give you cover in events of critical illness, permanent disability, health emergencies, accidental death and more. The idea is to proactively prevent investing in multiple insurance plans, which can be a financial burden.
- Return of Premium Waiver: Do you know what is a term insurance plan return of premium waiver? Well, it is one of the benefits that top insurance providers offer to help you ensure financial security for yourself and your loved ones. Under certain circumstances, as outlined by the insurer, you may claim all the premiums paid upon successful completion of the policy’s term.
Achieving Financial Security with Term Insurance Plan
Knowing what term insurance means, you can reap all of its benefits. While getting the life coverage benefits, you can have the peace of mind of knowing that your loved ones are also financially secure. However, apart from knowing what term insurance plan you may have invested in, what’s really crucial is to pick a reliable insurance provider.
Given its claim settlement ratio of 99.23% in the financial year 23-24, Canara HSBC Life Insurance is an insurer worth considering. Its official website features a user-friendly interface that allows you to easily navigate your term insurance plan and even buy it online.
Visit their official website today and invest in the best term insurance plans now!