What is this buzz about term insurance?

In India, most people either familiar with Life Insurance or insured with various policies in their name. All through this range of interest for insurance, Term Insurance plan is popular among them. Providing a low-cost track to financial security, term insurance policies sell like icecreams on a hot day. Be it their affordable premiums, long-term financial benefits, or their exciting tax savings, term insurance is all the rage. Particularly now, during peak tax season.

What is Term Insurance?

Term Insurance plans are pure risk insurance policies. This plan provides a cover for the unfortunate death of the insured. Like other insurance policies, you have to pay the premium for the policy for the duration of the plan. The beneficiaries will receive the benefit only if the insured person passes away during the policy term. On the off chance that the insured person outlasts the term, there is no survival or maturity benefit. Term plan is very simply - pay the premium amount, and get coverage for the picked term period. Term plans offer a cover for various terms like 5, 10, 20 & 30 years. Because of low-cost value, term plans are more affordable than other insurance policies and provide the same protection. Term insurance offers much higher returns than what premium you invest with. Such as MetLife Term Insurance offer you coverage till 99 years with flexible payout options and Tax benefit under section 80C.

Advantages of purchasing a Term Insurance Plan-

• Reasonable and secure –

Term Insurance is not an investment option. But it works as a reliable tool to secure your loved ones financially when you are not with them. Term Insurance plans are known for their higher returns, as the premium amounts are essentially lower than other insurance plans. So, with a term plan (such as MetLife Term Insurance), you can get a protection cover of Rs. 1 crore, with a monthly premium of Rs. 683 per month. Reasonable and secure.

• Low-cost coverage –

Term Insurance plans offer a low-cost management coverage. You can pick the limit and types of coverage according to the need and requirements of your family. Keep in mind inflation, return and growth with time, other types of insurance plan will be very expensive. While being over-insured is a risk and being under-insured make the whole point of insurance invalid. So, revise your term insurance every few years, to meet the needs of your family.

• Tax deduction –

Term Insurance additionally enable you to save your hard-earned money. According to Section 80C of the Income Tax Act, the premium paid in Term plan is eligible for tax benefits. Moreover, the death benefits received by the beneficiary is eligible for tax deduction under section 10(10D).

Why Term Insurance Plans best for your loved ones?

In the absence of your, when your loved ones suffer financially. What can you possibly do to ease their misfortune? If your needs are specific and time-bound than Term Insurance plans are ideal for you. PTIC INDIA, the most recommended Financial Planner in Delhi, has recommended PNB MetLife Mera Term Plan. This plan is economical and offers high life coverage for you and your loved ones. This plan covers you from critical illness, cover from accidental death, disability cover and Life stage protection.