What is Term Insurance And Its Benefits?

What is Term Insurance And Its Benefits?

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Insurance is a word that often comes with scary images in mind; those of accidents, broken limbs, hospitals and death. These are images which can scare even the toughest of individuals. However, despite all the images conjured in your mind, having insurance is actually one of the best things that you could do for not only yourself but also your family. Why you might ask? Well, simply consider a scenario, where you end up being hospitalised with multiple injuries. If insured, all the monetary concern will be covered by the company, without you having to bear any expense. In case of any unforeseen calamity, the family of the individual is paid by the insurance company.

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Term Insurance

Any financial problems that might arise due to the sudden demise of the sole bread earner of the family are taken care of in case of Term insurance by the insurance company. This helps overcome the financial burden which may have resulted due to the death of the loved family member. The risk cover, also known as ‘Sum Assured’ in term insurance is a fixed amount of money that is paid to the nominee on death of the life insured. Generally, the risk cover of term life insurance is till the end of policy (sometimes up to 35 years!)

How does a Term Insurance Help?

Despite the fact that generally, people consider themselves to be above most things, anything can happen to anyone and anywhere. However, it never hurts to be prepared for any eventuality. Term insurance is something which makes us ready for any eventuality and takes care of all financial risks coming out of any trauma. Though your reasons may vary, you should explore and know more about the common benefits of taking the term insurance which include –

Security of Family – If anything happens to the sole earner of the family, the entire family is plunged into huge despair. However, if a term insurance policy is taken, in case of such a misfortune, the family is well cared. The financial burden on the family is taken off when you have taken a term insurance policy.

Safeguard against Liabilities – Since most of the people purchase things taking loans, repayment of them as well as other expenses can drive anyone into depression. These liabilities are too much to handle at times of emotional calamities like the death of the sole breadwinner. Having a term life insurance goes a long way to safeguard your family against financial issues arising due to an untimely demise.

Reasonably Priced – More often than not, people think that buying insurance is a waste of time as well as money. However, they fail to consider that in case of unforeseen circumstances, the insured sum is going to go a long way in assisting their family financially. For the safety and security of your family, term insurance is a cheap investment with the option of monthly instalments too.

Sound Investment for Nuclear Families – Unlike the past, where joint families were the norm, people had a lot of support to fall back on in case of a personal tragedy. However, with a rise in nuclear families, financial support can be scarce. In such cases, taking term insurance helps the family deal with their personal loss at their pace without being concerned about pressing financial concerns.

Tax Benefits – While investing money for the secure future of your family, you can end up saving money! Term insurances provide you tax benefits under the Income Tax Act, Section 80 C and 10 (10D).

So, take care of your family and opt for Term Insurance.

 

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