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
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.
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.
Scroll to top