As the vibrant festival of Navroz approached, Delafruz and Dinaz, a young couple from Mumbai, were buzzing with excitement. This year, they decided to celebrate the occasion by not only feasting on sumptuous Parsi dishes but also by taking a significant step towards securing their family’s future – availing term life insurance.
Importance of term life insurance
Term life insurance is a financial safety net that protects your loved ones in case of an unfortunate eventuality. It is a commitment to ensure that your family’s dreams and aspirations don’t shatter due to financial difficulties when you are no longer around. This insurance plan offers a predetermined sum assured to the nominees if the policyholder passes away during the policy term.
Now, let’s dive into the benefits of opting for a term life insurance plan, illustrated through Delafruz and Dinaz’s journey –
Easy application process
The process of availing term life insurance was hassle-free for Delafruz and Dinaz. They didn’t have to go through cumbersome paperwork, making the entire experience convenient.
Financial security for your loved ones
Delafruz and Dinaz knew that the primary purpose of life insurance was to provide financial security to their family in their absence. By opting for a term life insurance plan, they ensured that their loved ones would be taken care of financially.
Term life insurance plans offer substantial coverage at affordable premiums. This meant that Delafruz and Dinaz could safeguard their family’s future without straining their monthly budget.
Certain term life insurance plans offer maturity benefits, which can act as a form of wealth creation over time. Delafruz and Dinaz were intrigued by the idea of accumulating wealth while securing their family’s future.
Protection against liabilities
Outstanding debts, such as home loans or educational loans, can be a significant burden on surviving family members. Term life insurance helps in clearing these debts, preventing any financial stress.
Availing term life insurance also provides tax benefits. Delafruz and Dinaz would be eligible for deductions under Section 80C of the Income Tax Act, further enhancing their financial planning.
Flexibility in the policy term
Term life insurance plans offer flexibility in choosing the policy term. Delafruz and Dinaz could tailor their coverage according to their family’s needs and future goals.
Peace of mind
Knowing that their family would be financially secure, Delafruz and Dinaz experienced a profound sense of peace and security, especially during uncertain times.
Nominee’s financial independence
Delafruz and Dinaz wanted their children to grow up with financial independence. Term life insurance ensured that their children would have the resources needed to pursue their dreams.
Some term life insurance plans offer riders that provide additional coverage for critical illnesses and disabilities. Delafruz and Dinaz decided to opt for such riders to enhance their protection.
Now, let’s explore the reasons why term life insurance is a must –
It clears off any outstanding debts, sparing your family from financial burdens. Many have distinct financial obligations such as car loans, credit card debts or home loans. In the unanticipated event of death, such debts do not disappear, they become your family’s responsibility. Term life insurance takes care of this burden by using the payout to clear off these debts, ensuring that your family is not left grappling with financial liabilities.
Term life insurance ensures that your family’s income is replaced, helping them maintain their standard of living. Suppose in your family, you are the only earning member. So, if anything uncertain happens to you then your family may financially struggle. Term life insurance steps in to fill this gap. It provides your family with a lump sum payout, equivalent to the sum assured, which can act as a substitute for your lost income. This means that your loved ones can continue to pay bills, buy groceries, and meet their daily needs without significant financial stress.
Funeral and other expenses
Funeral expenses and other immediate financial needs can be met without difficulty. Funerals can be expensive, and the sudden loss of a loved one adds emotional stress. Term life insurance provides immediate financial relief by covering funeral expenses and any other pressing needs that may arise after your passing. This ensures that your family can focus on grieving and healing without worrying about the financial aspects.
Education and future expenses
Your kid’s higher studies and future expenditures are covered, permitting them to realise their dreams. Being a parent, you often aspire to offer your kid the best education. Term life insurance secures their future by earmarking funds for their education and other essential needs. This financial support ensures that your children can follow their dreams, whether it’s pursuing higher education or starting a business.
It serves as a tool for long-term wealth accumulation and financial planning. Some term life insurance plans offer a savings component where the premiums paid accumulate over time. This can be an effective way to build wealth while ensuring financial protection. Delafruz and Dinaz saw this as an opportunity to create a financial cushion for their family’s future.
Protection against inflation
The sum assured is inflation-adjusted, maintaining its real value over time. Term life insurance policies often come with a feature that adjusts the sum assured for inflation. This means that as the cost of living rises over the years, the insurance payout remains relevant and sufficient to meet your family’s needs.
You can leave a legacy for your heirs, ensuring they have a strong financial foundation. Term life insurance allows you to leave behind a substantial financial legacy for your heirs. Whether it’s passing down assets, investments, or a significant sum of money, your legacy ensures that your family has a solid financial foundation for generations to come.
The payouts received by the nominee are typically tax-free, providing a significant financial advantage. Unlike many other forms of income, the proceeds from term life insurance policies are generally tax-free under the Indian Income Tax Act. This ensures that your family receives the entire sum assured without any deductions, maximising the financial support they receive.
No medical examination
Some insurers offer no-medical-exam policies, making it accessible to those with health concerns. Term life policy is usually more accessible as compared to other insurance types. A few insurers also provide policies that do not need a medical check-up, making it a prudent choice for individuals having pre-existing health issues or those who want a hassle-free or quick application procedure.
Supplementing employer insurance
If you have employer-provided insurance, term life insurance can supplement it, offering additional coverage. Insurance offered by an employer might not be adequate to meet the expenses of your family. Term policy permits you to supplement this cover, ensuring your family receive complete protection in the case of your unanticipated death.
As Delafruz and Dinaz celebrated Navroz with their family, they knew they had made a wise choice by availing a term life insurance plan.
In conclusion, opting for a term life plan is not only a decision; it is a commitment to your dependent’s well-being. It is about celebrating the festivals of life with the assurance that your loved ones are protected, financially and emotionally. So, don’t wait; explore the best term insurance plans for 1 crore and take the first step towards safeguarding your family’s future today.