What is the Best Way to Ensure Financial Security for Your Family?
With the rise in uncertainties, people generally prefer to buy a term plan over any other insurance policy. Today, more and more people are getting aware of term insurance and hence are buying it. Moreover, due to term insurance benefits, this is the first preference among every alternative in insurance available.
It comes with innumerable benefits that no one would miss the opportunity to buy for their family. With a family term insurance plan, the family of the policyholder is completely protected financially, even in case of his/her absence.
A term plan for the whole family is one of those financial tools that will keep you going in an emergency. Additionally, it aids in giving your loved ones financial security even when you are not there. To add further, we have mentioned why you must get a term insurance policy to ensure proper financial safety for your family.
Term Insurance as a Complete Financial Shield for your Family
There is no doubt that a family term insurance plan can provide a complete shield to the family, especially if there are dependents on you. But, adding riders gives several term insurance benefits to the policyholder and his/her family members. The benefits just do not end here. Term insurance is the best way to ensure financial security for your family, which is how it is. So, we are hereby listing additional term insurance benefits which one can get with the policy.
- Imparts pure life insurance coverage
You can consider a term insurance policy for pure life insurance coverage. Paying regular premiums offers protection for a specific amount of time. Moreover, one can buy a term plan as per one’s budget. It is affordable, cost-effective and, at the same time, gives mental peace to the policyholders.
- Additional benefits of Riders
The most popular term insurance policies can increase coverage by selecting extra term insurance benefits. Riders are such supplemental insurance benefits that can be purchased for specific needs.
- Affordable
The affordability of the premium is the main advantage here. A decent rule of thumb is to purchase term insurance as soon as one begins receiving regular income to obtain significant coverage for comparably lower premium costs.
- Regular payment
In an unfortunate circumstance, your surviving family members may receive the term policy’s sum insured as a lump sum payment or as monthly or yearly pay-out instalments. By doing so, the dependents can preserve their way of life, keep up with living expenditures, and plan for their future financial objectives.
- Tax Benefits
Additionally, term insurance has tax advantages. In this situation, there are primarily two types of tax exemptions: Section 80C, which allows for deductions for monthly premium payments, and Section 10(10D), which exempts the sum insured and bonus payments made at maturity or the death of the policyholder.
Conclusion
It is crucial to remember that there is no one-size-fits-all insurance plan. You can opt for either plan like Sampoorna Raksha Supreme (SRS) of Tata AIA Life Insurance Policy or some other policy as per your needs and financial requirements. There is no set formula for purchasing life insurance; instead, it primarily relies on the family’s risk tolerance, income profile, and financial goals.
Hence, a term insurance policy is the best way with which you can make a protective shield around your loved ones and family members. So, make the best out of it.
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