The only thing that remains predictable in this era of constant change is the unpredictability of change. It can be fast or smooth or sudden or gradual. However, let’s not forget about the things that matter in this fast-paced life. One such paramount thing is term insurance. Getting insured is one of the first things that an individual should do once they start earning a regular income.
Insurance is a hedge against uncertainty, which holds the potential to destroy your hard-earned income. Term insurance is one such policy that you should have to protect your financial interests. It provides your family with the finances they need after you meet with an unfortunate incident. It is of utmost importance to avail of term insurance at an early age, especially if you are the sole earner in your family.
Now that you know what role term insurance plays in your life, let’s dive into five reasons why you should get one in 2024:
- Affordable: The premiums for term insurance are affordable. One can get insured for a huge sum without breaking the bank. For example, an insurance cover worth one cr can have a premium of around INR 15,000 per annum. Your insurance coverage is based on the premise of the premium you can afford. Another pro tip is to begin as early as possible.
- Death benefits, tax-free: In the case of the term insurance, the beneficiary is your dependents who get the sum assured upon your unfortunate death. This sum ensures that your beneficiaries get tax-free. The government does not levy tax on it due to the fact that you have already paid taxes on the premiums paid for the policy. However, taxes may be charged in some cases.
- On-time payouts: India has multiple insurance policies for individuals. They range from term to health insurance, life insurance to travel, and much more. Out of all the various insurance policies out there, the term insurance policies have the fastest payouts. The chances of not paying out are slim in this case. There is little to no debate on whether the claim made is incorrect or whether the insurance service provider is obliged to pay up or not.
- Add riders to tailor your policy: Riders are add-ons to your policy. You can add death benefits, permanent disability clauses, accidental benefits and much more to make your policy rounded for more scenarios. These add-ons affect the premium you pay, as they will come at a cost. However, these add-ons will help your policy become stronger while offering you the best possible coverage.
- Protects the interests of your family: Term insurance acts as a cushion for your family in times of turmoil. It eases the blow by making it easier for them to handle life without affecting how they live.
Due to the multiple benefits of term insurance, it is ideal for every individual to get insurance in 2024. Plan and make your moves for financial security this year. Act to capitalise for yourself.