The best term insurance policy is a simple type of life insurance plan that guarantees to pay a predetermined amount of money, generally known as the sum assured, in the event that the insured passes away within the period of the plan.  If the insured person lives through the entirety of the plan period, then there will be no benefits paid out at the conclusion of the plan term. Due to the fact that the plan often solely covers the risk of death, the premiums are quite inexpensive.

Therefore, the term plan may be thought of as a type of life insurance that offers protection for the entirety of your life but does not include a maturity benefit. Whereas, in the case of other kinds of life insurance plans, the policyholder receives a maturity benefit of some kind if they make it through the whole term of the policy and are still alive at the end of it.

Term insurance policy, which is a type of life insurance that offers coverage for your life, does not include coverage for fatalities caused by suicide. However, term plans give coverage for your life.

Why Term Insurance Policies are a Lifesaver?

Nowadays, the premium for some of the best term insurance policies is rather cheap. Therefore, it is more cost-effective to choose the best term insurance policy that provides more comprehensive coverage for the same price as an endowment plan. Some of the invaluable benefits of choosing a term life insurance plan for you and your family are as follows:

Riders

There are many more forms of unpredictability in life in addition to death, such as being disabled, having a critical illness, having a terminal illness, and so on. Attaching riders to your existing term insurance policy is always an option you have if you want the coverage provided by your plan to be even more beneficial to you in the long run.

As an example, attaching a critical illness rider makes it such that if you are diagnosed with a critical illness, you will be eligible for the assured sum. This is in addition to the death benefit, which is guaranteed to be the same amount regardless of when the insured person passes away throughout the policy’s term.

You have the option to purchase additional riders, such as coverage for the loss of a job, coverage for disability, and coverage for the waiver of premiums, amongst others. To make the life insurance more appropriate and helpful for you, you only have to make sure that you choose riders based on their particular requirements.

Enhanced Protection

You can increase your life cover with term insurance plans. Only a few insurance firms provide their policyholders with the option to increase the amount of life cover.

The policyholder could be granted permission to increase their life insurance by a certain percentage when they get married or when they become parents. Because of this, you will have the flexibility to start off with a low level of coverage and then gradually expand it as your responsibilities and capacity to pay a larger premium grow.

Tax Exemption

In accordance with Section 80C of the Income Tax Act of 1961, any and all premiums paid for life insurance plans are free from taxation up to a maximum of one lakh Indian Rupees.

According to subsection 10D of the Income Tax Act, the claim amount paid out to the beneficiaries, or the bonus paid out to the policyholder is exempt from taxation.

Secures Your Loans

If you have taken out a sizable debt, such as a mortgage or an auto loan, term insurance may be able to save the day. It is helpful for those who have made considerable investments in new companies by either mortgaging their home or borrowing money at high-interest rates.

These individuals can protect themselves against the possibility that they will pass away before all their debts are paid back by purchasing term insurance, which is more affordable.

Conclusion

A term insurance policy offers several benefits. It provides a better coverage for lower premium and comes with tax benefits. However, make sure to compare different policies and choose the best plan available.