Features and Importance of a Term Plan

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Ideal Features of a Suitable Term Plan - Act Now for a Stress-free Future

  • 17th Jan 2020
  • 2,906

Buy Term Plan Now Ideal Features of a Suitable Term Plan - Act Now for a Stress-free Future

Term plans are the most sought after insurance policies due to the various advantages offered by it. Many get a term policy just for pure life cover available at an affordable price. Are you considering to get an insurance plan as well? Let’s look at the features of a term plan and some reasons as to why you should opt for it.

Features of Term Plan

Here are some major features of term insurance that you need to know about:

1. Affordable Option amongst Various Policies

A term plan is the most affordable plan from the several life insurance options available in the market. You could end up adding riders and get a larger sum assured but the premium quote remains to be less expensive when compared to policies like money-back insurance, whole life policy, etc.

2. Easy Mode of Purchase

The mode of purchase of plans has become even easier where you can get a policy from the comforts of your home. Online term plans are the most popular amongst the masses as they are simple and do not contain a lot of elements that you have to understand. In the case of confusion, you can fill a lead form on the insurer’s website and
the customer care executive will guide you through the entire process of getting an online policy.

3. High Sum Assured

Term plans promise high sum assured at an affordable rate when compared to other plans. This sum assured or death benefit helps in securing your family members and providing
them with financial stability. You can go on to get a suitable amount of death benefit based on the needs of your family and any liabilities you may have to pay off.

4. Rider Benefits

Insurance riders are additional components that you can combine with your term insurance policy to increase coverage. Some of the commonly bought riders are critical illness rider, accidental death rider, a permanent disability rider, waiver of premium, etc. Term plans allow you to add these riders and still get an affordable premium.

5. Flexible Premium Payment Options

Term plans offer you flexible premium payment options which are monthly, quarterly, half-yearly and yearly. These options enable you to pay as per your income cycle.

Importance of Term Insurance: Reasons Why You Should Get a Term Plan

Getting an insurance policy is considered by most but due to some reasons many stray away from it or end up investing somewhere else. But while looking at policies, many forget that these plans secure your life and give financial stability to your family. So let’s look at the reasons as to why you should opt for a term plan:

1. Safeguards Your Loved Ones

Term insurance provides pure life cover to you and promises a death benefit for your loved ones. This death benefit is a lump sum or a regular payout given to your family to stabilize their future. You can also choose the sum assured while buying the policy and account for the cost of education, liabilities, etc. to cover your family.

2. Eliminates Stress

When you know that your family is taken care of, it reduces the stress from your life considerably. With the sum assured available to pay off any loans and debts you may have,
your family will be able to live independently. Hence, a term plan takes some of the weight off your shoulder.

3. Tax Benefits

You are shelling out a part of your income to secure life insurance but some extra perks that you get with it are income tax benefits. You can claim the premiums paid towards the policy under Section 80C of the Income Tax Act, 1961. Another tax benefit for your family is that the sum assured can also be claimed under Section 10(10D).

Buy Term Plan Online and Secure your Loved Ones

- A Consumer Education Initiative series by Kotak Life


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