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 of them 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 the ones who have a family to take care of. Couples who are working should also consider a term insurance plan because as one of them is no longer there, the source of income will become half while the expenses will remain the same.
Why should millennials buy term insurance plans?
Term insurance plans should be bought by everyone. And it is especially advisable for the millennial because they are under 40 years of age, and the sooner they buy a term insurance plan, the better benefit their family will be able to avail. And if you are under 30 years of age, the death benefit that your family will get will even be better. Most of the life insurance companies these days also offerCOVID-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. People for a long time in India 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 that you have to pay for a term insurance plan is reasonable. There are various types of installments, such as monthly, quarterly, 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 not there anymore 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 tenure of the term plan, your family will be able to claim the sum assured.
- Covers critical illnesses, accidental deaths. There are term insurance plans that cover death due to accidents and even some critical illnesses. However, the death caused due to critical illness should match the ones that are mentioned in the policy.
- Additional riders: You can add riders to the plan to get better benefits. To add the riders, you would need to pay a nominal additional premium.
- 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 get any benefit on the maturity of the plan. However, all the money that you are going to put throughout the tenure of the term can be received back.
Apart from these, there is a myriad of benefits that your family will get at the 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.
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