Life can be full of uncertainties, and no matter how much you plan ahead, it’s impossible to be completely secure and certain with what your future holds. With the inability to see what’s around the corner, it’s important to ensure you’re taking the appropriate steps to protect the future of your family in your absence.
One of the most well-known ways of doing this is with a term plan, but why exactly do you need a term plan, and how does it help?
In today’s definitive guide, we’re going to detail some of the best reasons you need to know about.
Low Cost, High Return
Typically speaking, the premiums you’ll need to pay on a term plan are far less than any other form of life insurance plan, which makes it a great investment that’s suitable for anyone of any budget. Premiums are usually adjustable and can be tailored to suit you and your lifestyle.
However, by starting your terms early, you can maximise the return for you and your family.
Low Tenure Options
Of course, this depends on your provider and what they’re offering, but in many cases, you’ll be able to get a tenure as low as ten years, even shorter are available if you take out a personal or home loan with your policy. By connecting these policies together, if something happens to you during this time, you know that all aspects of their lives are covered.
There’s no denying that longer-term options are available if you want them, and you can extend your shorter policies as and when you want to, but the options are always there.
Longer-Term Plans
While short term plans are available, you can also enjoy long term plans, which are far more beneficial the earlier in your life you start them. The majority of plans will last up until you’re 70 years old, some 75, meaning you can be covered for your entire lifespan.
Tax Benefits
Regarding the premiums you’re paying, having a term plan can give you access to income tax benefits every year under Section 80C of Income Tax Act 1961. This always means the death benefit plan out is tax-free, which is a huge advantage for your loved ones.
Effortless Purchase
Unlike some insurance policies, term plans are incredibly easy to buy and take no stress or hassle whatsoever. It’s easy to compare the different policies, what they’re offering, and their prices, and there are some handy tips like buying your policies online which can ensure they’re even more affordable.
Plenty of Extras Available
If you want to add in extras into your policy, like rider’s cover that can protect you and add premium returns for things like accidental death, cardiac cover, and critical illness cover, these are all fully possible with the majority of term plans. This, again, will depend on your policy provider, but it’s always worth asking to see what extras are on offer.
Summary
The demand for life insurance is ever-increasing, and the importance of protecting your loved ones financially in the case that you might not be around can never be overstated. By taking a few simple steps now and a little bit of investment, you can help secure your family’s future for the better.