Why is Term Plan Becoming So Popular Among People?

Everyone needs to understand the importance of insurance policies in life. The current COVID-19 pandemic has taught us that we are living in an uncertainty, and it is essential to cover our financial interests. COVID-19 has also given rise to plenty of insurance policies in the country that will cover your COVID-19 expenses in the future.

Similarly, it is important to start thinking about different types of insurance policies that will work for your benefits. One such imperative and advantageous approach is a term insurance plan. It is a type of life insurance that you take for a certain period of time and not for a lifetime.

Additionally, you will receive a death benefit if you die before the maturity of the plan. In a nutshell, term insurance plans have become a go-to saving device for people who look to cover their life.

Why Is Term Insurance Popular?

Each insurance plan has its set of perks that you need to understand before taking them. Term plans are also beneficial in so many ways. Here are the top reasons why people prefer term plans more than ever.

#1 Perfect For Securing Your Family’s Future

Whether you are the sole income source of your family or not, it is important to plan for your family, so they may not suffer in your absence. A term plan is the best security you can plan for them. Whether it is marriage, home loan, higher studies, or medical expenses, your term plan will cover everything without any question. With the death benefit, your policy will keep on benefiting your family.

#2 Cheap When You Buy It Early

You must not take long if you want a term plan. Yes, it is said that a term policy is much more affordable when you buy it at a young age. The premium increases with your age, so buying it early will allow you to pay a lesser premium. You can also use a term plan premium calculator to understand the correct premium amount at a certain age. Try different ages when you calculate the premium, and you will see a substantial difference between them.

#3 Superior Coverage With Riders

Term plans are among those life insurance policies that come with add-on options. Yes, riders are the additional features that you can add to your plan in order to increase its worth. There are different types of riders available along with the term plan. Accidental death/disability, critical illness, waiver of premium, and income riders are the most popular.

#4 Income Tax Benefit

Yet another reason why people are inclining towards this insurance plan is its income tax benefits. The premium paid for the term plan is deductible under Section 80C of the Income Tax Act 1961. Additionally, the death benefit given to the nominee is tax-free under Section 10D. In a nutshell, apart from core benefits, a term plan is great from a tax perspective as well.

These are some more reasons you must think about a term plan and find yourself the best policy. Don’t think twice about securing your life with a good term plan.

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