Is term insurance a smart investment

Term insurance when compared to any other life insurance instrument is a much cheaper form of insurance which gives coverage for the entire life of the policy holder. The policy holder needs to pay a premium for a pre-determined time period as opted. Now the question is which is the best term insurance? The answer to this question is to choose the best term insurance plan that fits your needs as there is an array of different term insurance plans.

Choosing term insurance becomes a necessity; this brings benefits for your family financially during your absence. Few term insurances also give you the benefit of receiving the term amount; in cases when you are diagnosed with a critical illness. To know whether term insurance is a smart way to invest; it is essential to elaborate the reasons to opt for term insurance, which make it a smart term insurance choice.

How is term insurance a smart investment?

• The best part of investing in term insurance is that it helps your family to manage the day to day financial activities in your absence, thus you secure your family during the emotional and financial crisis.
• Term insurance provides you all the benefits of taxes which are mentioned under Section 80C. Moreover, if you choose to invest in a critical illness plan, then you become eligible for tax benefits under Section 80D. ICICI Pru iProtect Smart also provides you with additional benefits if you choose the accidental death coverage for term insurance.
• Term insurances with rider benefits have an accelerated sum assurance especially in cases of accidental death and critical illness. In case of critical illness, the amount is paid at the first diagnosis of the illness.
• Fexible term plans also help you choose the term according to your age, family needs, pre-existing diseases, etc. Choosing the term insurance at a younger age helps you to get cheaper premiums through your life span. So you get the same coverage by just paying a small amount of insurance.
• Those who enter the criteria of joint term life insurance are eligible for cheaper premium as compared to single term insurance. Additionally, the surviving spouse has the insurance cover after the demise of the other spouse

To conclude

Term insurance gives dual benefits – one, it secures your family in your absence; secondly, the investment helps save taxes. You can always search for the best term insurance plans amongst the different types of term insurance like standard term insurance or joint term insurance according to your needs.

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