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What are the benefits of a Term Insurance Plan?
Asked by Ekta Kariya -
3 years ago
"A Term Insurance is a type of life insurance plan that secures your family's future in the account of your death, disability, critical/terminal illness. It ensures financial protection for your family for a term chosen by you. If you've been thinking of buying a term plan, then here are a few benefits that you should be aware of:
a.) Helps you cover financial obligations: If you've taken any car loan, home loan or a personal loan, then having a term insurance plan would easily help your family repay your financial liabilities in case of your unfortunate demise.
b.) Lower Sum Assured: A term insurance plan provides you with a Sum Assured as low as Rs. 25 lakhs.
c.) Premium: A term insurance plan offers high coverage at low premiums. This is because these are pure risk plans and cover the risk of death of the insured and no investment component is involved. Hence, resulting in lower premiums.
d.) Tax Benefits: The premiums you pay under a term insurance plan are exempted under section 80C of the Income Tax Act, 1961.
3 years ago - By Rahul Shukla