Benefits of Buying Term Insurance
Imagine you are cruising along Highway in your brand new SUV, singing and mind-jamming along with your favorite numbers playing from your ultra-decibel stereo, having the best drive time of your life. Suddenly, a cow appears out of nowhere and doesn’t seem to want to get off the road and from the danger of your oncoming four-wheeler. Seeing that it’s likely to be a bad day for the poor animal , you want to save its life, hit the brakes suddenly and risk your own. And then…
Term insurance is a pure plan to cover risk, and that’s because it helps you mitigate the financial problems associated with any life threat that may arise to you. This insurance doesn’t just mitigate risks, but as well helps your loved ones to sidestep or overcome any sort of financial issue that is harbingered by that particular risk. Commonly known as the Sum Assured, it is a predetermined amount of money paid to the designated nominee in the event of the assured’s demise. The risk cover is a lasting move that would do you one, two or all of these benefits.
Term life insurance affords you tax benefits u/s 80C and u/s 10 (10D) of the Income-tax Act. Hence, when you purchase a term insurance, you would be advertently or inadvertently saving yourself some money.
Nuclear Families Benefit
This long-term insurance is beneficial because unlike several decades ago, there are far less joint families as of now. As a matter of fact, nowadays, the only support system your close-proximity family may be you. Should you not purchase term insurance while you’re still around, your nuclear family could be put through a lot of financial squabbles that could be very tough to pull through when you’re no longer around. This makes the insurance a dealer for the financial repercussions in your absence.
Protection against Liabilities
While we all are up and grinding, we take on a number of liabilities to buy a home, a brand new four-wheel drive and a host of all other luxury items. A larger number of these liabilities are normally paid for over a period of time, and in case something happens to you, the burden to pay up these debts may bear down as a burden on your family unless you have a term insurance. It will arm your dependents to manage aforesaid financial issues.
Supposing you are the sole breadwinner of your family and you need to make sure they are on the right side of funding when you’re not around, term insurance is the must-do on your bucket list. It will serve as a big, wide financial umbrella that will cover your family from money storms and rid them the worry of cash burdens when you’re no longer physically around.
Before you freak out, the idea that term insurance costs a fortune is all a hoax. Unlike other life insurance products, it’s one that you can buy at a low price if you buy it early enough, it may also bring down the monthly premium.