Top 10 reasons why term life insurance plans are a must-have
January 11, 2019
Term life insurance is undoubtedly the most affordable and one of the cheapest life insurance policies which can financially secure your family even in your absence. Implementation of new taxes on insurance policies have upsurged the premium prices, but still when compared; the term life insurance premiums are more budget friendly.
Here we will sight 10 reasons why investors prefer to choose term insurance plans-
Term insurance plans are always cheap, and they fit easily within the budget. This is also a basic life insurance plan where the policyholder needs to pay a small premium amount and the company fixes a death benefit based on the premium paid. In lieu of just a nominal premium, it offers a huge death coverage.
Term insurance plans include tax-free death benefit where the sum received by the nominee of the policy-holder is tax-free. The government does not levy tax on the assured sum as the taxes are already given while the premiums are paid. Though some instances may make the amount counted as taxable.
Term insurance plans give you even higher benefits if you buy the insurance at an early age. The earlier you buy the insurance, the lower the premium you have pay.
Term insurance helps you choose between short term life insurance and insurance for a longer term. Though some insurance companies offer term insurance till the age of 70-75, iProtect has the provision to opt for a cover till the age of 99.
The premium amount paid for term life insurance are fixed and do not vary with time unless there are any changes in the tax laws.
Term insurance plans also come with an additional accidental cover where if you choose a cover with accident benefit, the nominee is liable to get a higher assured sum.
Term insurances like iProtect also help you get a cover in case of critical illness where you get a lump sum to fight with your critical illness even before your death and on the first diagnosis itself.
Few insurance covers like iProtect Smart allow you to protect the assured amount from creditors and fraudsters through false claims. It ensures that the assured sum will be paid out to your nominee only, which can be your wife or children.
You can very easily buy term insurance online by choosing between different types of term life insurance. You can always visit the company website of your choice and follow simple steps to opt for the best term life insurance that suits your requirements. Term plans that are bought online are comparatively cheaper than getting it from the agents.
Once you agree to the terms and conditions of the insurance, you get into an agreement with the company where the company is liable to pay you the assured amount. But you can always change the policy type or drop the policy completely without being accountable for any penalty.
Term life insurance policies are easily available, and the policyholders are also capable of converting the existing policy to some other policy mentioned in the company’s list. Though there are restrictions regarding the conversion cost, time period or the converted amount, this insurance policy has a lot of perks as compared to any other insurance.
The contents of this document are meant merely for information purposes. The information contained herein is subject to updation, completion, revision, verification and amendment and the same may change materially. The information provided herein is not intended for distribution to, or use by, any person in any jurisdiction where such distribution or use would (by reason of that person‘s nationality, residence or otherwise) be contrary to law or regulation or would subject lClCl Bank or its affiliates to any licensing or registration requirements. This document is not an offer, invitation or solicitation of any kind to buy or sell any security and is not intended to create any rights or obligations. Nothing in this document is intended to constitute legal, tax, securities or investment advice, or opinion regarding the appropriateness of any investment, or a solicitation for any product or service. Please obtain professional legal, tax and other investment advice before making any investment. Any investment decisions that may be made by you shall be at your sole discretion, independent analysis and at your own evaluation of the risks involved. The use of any information set out in this document is entirely at the recipient's own risk. The information set out in this document has been prepared by ICICI Bank based upon projections which have been determined in good faith by lClCl Bank and from sources deemed reliable. There can be no assurance that such projections will prove to be accurate. lClCl Bank does not accept any responsibility for any errors whether caused by negligence or otherwise or for any loss or damage incurred by anyone in reliance on anything set out in this document. The information set out in this document has been prepared by ICICI Bank based upon projections which have been determined in good faith and sources considered reliable by lClCl Bank. In preparing this document we have relied upon and assumed, without independent verification, the accuracy and completeness of all information available from public sources or which was provided to us or which was otherwise reviewed by us. Past performance cannot be a guide to future performance. 'lClCl ' and the 'I-man' logo are the trademarks and property of lCICl Bank. Misuse of any intellectual property, or any other content displayed herein is strictly prohibited.