Many things can go wrong in life. Unfortunately, we do not have control over most of them. However, we can make sure that we are prepared for it. Having a term plan will ensure that even in the most challenging situations, you have financial assistance. It will help you create a support system for your loved ones when they need it the most.
A term plan is one of the most commonly known types of insurance policies. It provides the policyholder's family with adequate coverage in the unfortunate case of their demise. The best term plan in India offers life cover at affordable rates with the option of customizing them to your specific requirements. There are ways to opt for health coverage under a term plan as well.
Let's talk about some of these benefits of a term plan that make it an ideal investment choice.
1. Whole Life Cover
Insurance policies are a valuable financial instrument in each individual's life. The primary purpose is to make sure that the future is secure and comfortable for our loved ones.
A term plan, as an insurance policy, offers comprehensive coverage for a long time, even until the policyholder is 99 years of age. Hence, investing in a term plan will ensure that you live a comfortable and peaceful life.
2. Affordable Premiums
One of the most positive features of a term plan is that it provides comprehensive coverage at low premium rates. Most often, people opt for a term plan early in their lives to maximise their benefits efficiently. You can choose to pay these affordable premiums on a monthly, quarterly, half-yearly, or yearly basis.
You can also include critical illness rider to the term plan to add health component at an additional premium.
3. Tax Benefit
As you may know, the government of India allows certain investments to be eligible for tax deductions. Under Section 80C of the Income Tax Act, the policyholder can avail of such tax benefits for premium payments towards securing a term plan. It offers the insured some relief from the financial burden in the present.
There are other sections that allow additional tax benefits if they apply to your term plan features, such as Section 10(10D) if you add critical illness riders.
4. Riders
Most people know the primary advantages of a term plan. However, you may not be aware of the additional benefits available for the policyholders in the form of riders. These are add-ons to the policy that can help strengthen its coverage. It can enable you to create a plan with benefits that are specific to your requirement.
For example, Max Life Insurance offers a critical illness rider to add to your term plan. It modifies the plan to provide health coverage if the policyholder suffers from a life-threatening disease. When you opt for such a rider, it can significantly enhance the term insurance benefits.
As the policyholder, it is favourable to be informed about the critical illness rider that can boost your term plan extensively.
Critical Illness Rider
When a person buys a term plan, they make a conscious decision to be prepared for various contingencies in life. Health emergencies are one of the most distressing situations, both physically and financially.
Hence, when you are purchasing a term plan, a critical illness rider's additional benefit seems exceptionally reasonable. Let's have a look at some of the key reasons to include a critical illness rider to your term plan.
- A critical illness rider offers coverage to the policyholder against life-threatening illnesses such as kidney failure, cancer, heart attacks, chronic liver and lung diseases, and many more.
- The best term plans in India cover several such serious illnesses to make sure that the insured does not bear the burden of the medical bills out of their life savings.
- The cost of medical treatment is rapidly increasing. In times of a health emergency, an enormous financial burden will only add to the existing financial problems. A critical illness rider improves the term insurance benefits by adding health coverage to basic life coverage.
- While you pay an additional premium to avail of a critical illness rider's benefits, it is also eligible for tax benefits under Section 80D of the Income Tax Act.
- A rider will always cost lesser than a standalone health insurance policy. Therefore, a term plan with a critical illness rider can further the insurance benefits at a lower price. It does not eliminate the choice of a health insurance plan but only provides the policyholder with an option that may suit their financial profile.
Each of us is looking for ways to deal with life's unpredictability to the best extent possible. A term plan in itself is a promise to ensure the family's well-being in times of crisis. When you add a critical illness rider to the term plan, it simultaneously secures your present and future. Plan the financial decisions of your life to make the best of the insurance plans available for your benefit.