The world changes at a faster pace than one can imagine, and often these changes bring about alterations in what we expect from our lives and our ability to meet those expectations. When you are used to a certain income, a certain standard of living, and meeting certain needs, it becomes vital to have some kind of a safety net that protects all of these elements, no matter what. This is where term insurance comes in.
Here are some reasons why investing in term insurance is an absolute must:
1. High Sum Assured
With a term insurance, the high sum assured levels are often part of the package. Large covers like 1 crore are often commonplace in insurance at premiums as low as INR 521 a month. It is funds such as this procured at a negligible cost that can go towards protecting yourself and your family in the case of an unfortunate event.
2. Larger Safety Nets
There are many policies available that offer decent coverage but do not necessarily provide the kind of safety net that an inclusive term insurance does. For instance, there are certain policies that offer protection even in cases like disability and disease. As a result, even in situations where your capacity to earn is severely limited, you can still provide a good lifestyle and take care of the ones you love. Term insurance policies with such comprehensive risk-based plans are often ones that can mean the difference between insurance and smart insurance.
3. Lower Premiums
When you compare a term insurance policy with a different insurance product such as a ULIP, you’ll notice a remarkable difference in the premium rates. As the two insurance products are designed for different uses, the premiums and covers that they provide vary vastly. By paying lower premiums, investors are still able to ensure high coverages for their families during unforeseen events in a term insurance policy.
4. Tax Benefits
A term insurance offers tax benefits as per the current tax laws of the country. This can allow you to save some money and increase your purchasing power. Depending on the policy, investors can also choose tax efficient options if available to further add to their savings.
Term insurance policies are not necessarily just a rigid set of terms and conditions imposed on you. Many policies offer multiple options so that you can customize them to meet your needs in the most effective way. For instance, there are policies that grow along with you, allowing you to bump up your premium and cover as you hit key milestones in your life. This ensures that an older premium and cover that may be less beneficial with your current position in life can easily be altered to suit your lifestyle more.
All it takes is choosing a policy that meets your needs and making the decision to invest sooner rather than later. After all, insuring your life is an important aspect in living it to the fullest.