Last Updated on March 2, 2024 by Asfa Rasheed
If there is one common thing that we find in most millennials is that they do not give much importance to a term insurance policy. Some are too optimistic about their life, while others do not want to take any responsibility; thus, most think term insurance is a waste of money. However, the second wave of COVID-19 in India has shown us that even young lives are vulnerable, and even they can leave us way before time.
Those who have been taking their life too lightly should pay heed to the term insurance plans now. It is especially important for those with a family to care for. Working couples should also consider a term insurance plan because as one is no longer there, the source of income will become half while the expenses will remain the same.
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Why should millennials buy term insurance plans?
Everyone should buy term insurance plans. And it is especially advisable for millennials because they are under 40 years of age, and the sooner they buy a term insurance plan, the better benefits their family will be able to avail. And if you are under 30, the death benefit your family will get will even be better. Most life insurance companies these days also offer COVID-19 term insurance. This means some policies cover death caused due to COVID-19. COVID-19 life term insurance is proving to be a great help for families who have lost an earning member of the family.
What are the benefits of buying term insurance plans?
Term insurance is not a new concept. For a long time in India, people have been putting their hard-earned money into life-term insurance. Let us shed some light on the several reasons why people prefer purchasing term life insurance:
Affordable premium:
The premium you must pay for a term insurance plan is reasonable. There are various installments, such as monthly, quarterly, and annually. You can choose anyone and pay the premium accordingly. In most cases, the annual premiums are the most affordable.
Death benefits:
What can be more relaxing than knowing that even if something happens to you and you are no longer with your family, your family can still manage their expenses without facing a financial problem. And term insurance plans exactly provide that kind of service. If you pass away within the term plan’s tenure, your family can claim the sum assured.
Covers critical illnesses and accidental deaths.
Term insurance plans cover death due to accidents and even some critical illnesses. However, the death caused due to critical illness should match the ones mentioned in the policy.
Additional riders:
You can add riders to the plan to get better benefits. You would need to pay a nominal additional premium to add the riders.
Income tax benefits:
Under Section 80C of the Income Tax Act 196, the premium you pay for the term insurance plan you have bought is tax-deductible. As per the provisions of Section 10(10D) of the Income Tax Act 1961, the death benefits are totally tax-exempted.
Option for return of premium:
If you survive through the policy term, you will certainly not benefit from the plan’s maturity. However, all the money you will put in throughout the tenure of the term can be received back.
Apart from these, there is a myriad of benefits that your family will get in their time of need. If you want to compare various term insurance plans offered by different companies in India, you can visit the website of IIFL Insurance. This will help you get a fair idea of choosing the right term insurance plan.
A Quick Overview
The COVID-19 pandemic has led to a heightened sense of awareness and concern about the importance of financial security and stability. As a result, many millennials are now showing an increased interest in term insurance plans to secure their family’s future.
Term insurance plans offer a simple and cost-effective way to provide financial protection to one’s loved ones in the event of an unforeseen event or untimely demise. The plans provide a predetermined amount of coverage for a period, typically one to thirty years, with premiums paid regularly.
Millennials, in particular, are attracted to term insurance plans due to their affordable premiums and flexibility. Many are still in the early stages of their careers and may not have the financial means to invest in more complex financial instruments. However, they still want to ensure that their families are cared for in case of an unexpected event.
Additionally, the COVID-19 crisis has highlighted the importance of being prepared for the worst-case scenario. With the pandemic impacting millions of people’s lives and livelihoods, millennials have become more aware of the need for a financial safety net.
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