Best Term Plan: A term insurance plan is a type of life insurance plan that provides financial benefits to the beneficiary for the unfortunate loss of the life assured during the policy tenure. The compensation is provided to the family of the policyholder as a death benefit.
Term plan insurance is the simplest form of life insurance that helps you to financially secure your loved ones in your absence. Term insurance plans are affordable and you can get a high coverage amount at the most affordable premiums.
Choosing the best term plan is very important for an individual who has dependents or a family. You can compare the various plans online and choose the best term plan that is affordable and suitable for you.
How Does a Term Plan Work?
A term insurance plan can be considered one of the most traditional forms of insurance. Most term insurance plans have a premium that can increase in small amounts over a period of time.
Term plan insurance is affordable and provides high coverage amount to the dependents of the policyholder in case of any unfortunate event that happens to the policyholder.
Term insurance plans are widely known as pure protection plan that provides death benefits. Some term plans provide maturity benefits upon the survival of the life assured till the completion of the entire policy term.
Term insurance plans can also avail of tax benefits under Section 80C and 10(10D) of the income tax act,1961. It helps you to create financial security for your loved ones and help them fulfill their dreams and requirements in your absence.
Why Should You Buy a Term Insurance Plan?
Term plans are the basic type of life insurance policy that is very cost-effective and help an individual to secure the future of their loved ones financially.
You can avail of high coverage at nominal premium rates. It is advisable to purchase a term insurance plan at a young age so that you can get high returns at low premiums rates.
Term insurance plans can also help you save taxes as the premiums paid for a term plan qualify for tax benefits under Section 80C of the income tax act 1961. Maturity under a term insurance policy is also tax-free to Section 10(10D) of the income tax act.
Under the best-term plan, you can add additional coverage known as riders which helps in increasing the scope of coverage.
The riders like accidental death benefit, accidental permanent disability, critical illness rider, etc. can be added to the term plan insurance in exchange for an additional premium.
Max life smart secure plus plan is a term plan which can provide financial security to your family and fulfill their requirements in case you are not around anymore.
5 Features of The Best Term Plan
There are many great features of the best term plan. Here are the five most important ones.
Affordable Premiums
The term insurance plan is a pure life insurance cover. If the policyholder passes away before the tenure of the plan is over, the family of the policyholder receives a sum assured from the insurance company.
By investing an affordable amount regularly, you can get higher returns which can be helpful to your loved ones. You can financially safeguard your family by paying cost-effective premiums.
Easy To Purchase
The term insurance plans are very popular because of the facility of easy purchasing. You can either find a trustworthy agent who can handle buying the cover for you or you can do it by yourself by using the internet.
You just have to find the web portal of the insurance company you trust and apply for the insurance online.
Tax Benefits
You can also get tax benefits on the premiums paid under Section 80C along with the premiums paid towards critical illness benefits. The lump-sum amount received by the nominees as the death benefits is also tax-free under Section 10(10D) of the Income Tax Act, 1961.
Premium Waiver
In case of an accident or disability, it can be hard for you to generate income for paying premiums. If you have added an accidental total and permanent disability rider on the selected term insurance plan, all the future premiums payable will be waived off for the life and the policy will continue.
The coverage of the policy will also be applied continuously.
Regular Income Payout to Your Family
While buying any term insurance plan, you must check whether the plan has a regular income payout option. It will make sure that your family receives a regular flow of income when you are not around them.
It helps meet the monthly expenditure and fills the gap that is created due to the absence of your salary.
Conclusion
The best term plan will provide you with cover and will ensure the financial security of your family. You can align your long-term goals with the term plan and make the right investment decision.
It is affordable and a simple plan that will give you peace of mind that your family will be looked after in your absence.
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