Term Insurance Plan(TIP) is a basic need of every person because of many things. It is a security as well as saving of money. This is the best way to manage the privacy and security of the data and money. However, there are many good reasons to purchase a TIP. Moreover, there are many critical conditions in life in which we required insurance as well. Therefore, a term insurance plan is necesaory for every person. Besides, it should be more beneficial for family members as well as others. It is the best way to invest money in life insurance. Mostly, people are using TIP for their personal benefits as well as savings. It is the most suitable and useful concept in the world to save money with security as well. It can be more beneficial when you make it more valuable as well.
Term Insurance Plans
Term Insurance! Heard of this term but don’t know what it is? No worries! We’ll talk a bit about it here.
So basically, a Term insurance plan is nothing but a type of life insurance contract, according to which in the case of policyholder’s demise during the policy term, the beneficiary/nominee will be paid in lump sum amount. The beneficiary will be the member of the family nominated by the policyholder to whom all the policy benefits are paid after the death of the holder. This policy is termed asTerm Insurance because it covers the life of the holder for a specified period.
Your time is limited, so don’t waste it living someone else’s life. Don’t be trapped by dogma — which is living with the results of other people’s thinking. -Steve Jobs
This should also be noted that the term plan does not offer any maturity value if the holder is left with the total at the end of the policy term. Yeah! This is the reason why term insurance is so cheap.
Why should one go for Term Insurance?
In case of any emergencies or some unfortunate circumstance such as the death of the provider in the family, can make rest of the family financially broken. Also, the future seems to be in danger. One can opt for Term Insurance to ensure that their family continues to receive financial support so that they can maintain a decent life after one is not around.
Also, one can take a loan over this term plan for buying a property or vehicle or for some other needs for that matter. In case of an unfortunate event, if one is no more around, their dependents may avail the benefits of the term plan i.e. the insurance payout to repay the loan amount.
Another benefit of term insurance is critical illness protection. We are well aware of the lifestyle of most of the population these days. Leading such a lifestyle also leads to various health issues. Some of the Term Insurance policies also include critical illness protection for the life span of the policyholder. Under such plans, the expense will be paid if diagnosed with some critical sickness like Cancer.
“When you reach the end of your rope, tie a knot in it and hang on.” –Franklin D. Roosevelt
Talking about the benefits, we should not forget the tax benefits it provides. The tax benefits can be availed under section 80C of the Income Tax Act, 1961.
The next question arises, who should opt for Term Insurance?
Basically, any person who has a financially dependent family should consider this plan. So that way parents of dependent children, working professionals, retired people married couples, self-employed person and a taxpayer who is looking for some tax benefits can give this plan a thought.
Types of Term Insurance
There are various types of term insurance plans available. Some of these are:-
- Standard Term Plan,
- Critical Illness Cover Plan,
- Term Return of Premium Plan,
- Level Term Plan,
- Accidental Death Cover Plan,
- Single or Joint Life Insurance Plan,
- Group Plan,
- Limited Pay Plan,
- Term Return Of Premium Plan,
- Increasing and Decreasing Term Plan,
These are the basic plans for a common person as well as a higher authority person, which is suitable for all classes.
Thanks and regards ….!!!
Waiting for your response in comments for betterment….!!
The Team TIQ