They are easy to understand
One of the notable advantages of term insurance policies lies in their simplicity and clarity. Your responsibility primarily involves timely premium payments, and in return, the insurer provides coverage for a specified duration, ensuring the benefits of the term insurance are accessible to you.
High sum assured at affordable prices
In contrast to other life insurance options, term insurance policies come with cost-effective premiums. Additionally, it's important to note that the earlier you invest in a term policy, the more affordable your premiums will be.
Multiple death benefit payout options
Term policies offer the advantage of multiple death benefit payouts, ensuring that the policyholder's dependents receive a substantial sum in the event of the policyholder's untimely passing.
Individuals can also opt for a combination of monthly income and a lump sum amount as the death benefit, simplifying financial management for the deceased's family.
Provides accidental death benefit coverage
Accidents can happen unexpectedly, and when a family lacks earners, the burden of daily expenses and obligations like home loans can become daunting. Term life insurance policies for accidental death provide crucial financial support to help family members navigate these emergencies.
Comes with several tax benefits
Were you aware that term insurance policies offer more than just financial security for your family? Below are key points highlighting the tax benefits they provide:
- You can enjoy deductions on term insurance plan premiums under Section 80C of the Income Tax Act of 1961, allowing you to claim benefits of up to ?1.5 lakh.
- Under Section 80D of the Income Tax Act, individuals have the opportunity to claim deductions of up to ?25,000 for premiums paid for health-related coverage, such as critical illness riders.
- According to Section 10 (10D) of the Income Tax Act, the death benefit from term insurance plans is fully tax-exempt.