Insurance & Finance

Understanding the Benefits of Term Life Insurance: A Comprehensive Guide

Term Insurance is an important thing in our life. But many people do not pay much attention to term insurance. Term Insurance means insurance with death benefits. Now many new benefits have come with term insurance. If we are taking insurance now, we will pay the premium amount as if there is only so much coverage. If something happens to you and you die during that time, the entire scope will go to your nominee. Term Insurance works like this and some of the terms and conditions vary between insurance companies.

We are doing many things for the comfort of the family. But who will take care of the family if we die? So Term Insurance gives great financial support to the family. In this post, you can know 6 important pieces of information about Term Insurance.

  1. Lower premium amount:

If you have taken Rs 1 crore coverage for 30 years, the premium you have to pay will be between Rs 10000 to Rs 20000 per year. As a result, your premium will be much lower per year. So you should think about term insurance.

2. Term Insurance should start at a young age:

Definitely term insurance should be started from a young age. Because then the premium amount you have to pay will be less. Because from an early age, they will choose your premium by considering your age, health, personal habits, etc.

3. Increase in coverage during interval periods:

In this Term Insurance, you can increase your premium amount if you want to increase it in a certain period. If you want to increase the coverage while increasing your income, you can do it as per your convenience.

4. Longer Tenure:

Some companies are providing coverage from 70 years to 75 years. It will help you if you use companies that have more tenure. Apart from that, the coverage amount for your family is higher and you will get more in the end. Hence if you take term insurance from a young age it will help.

5. Rider Addons:

Term insurance has many features where you can choose accidental death rider or critical illness rider. These Riders will vary from Company to Company. But you have to pay a bit more for this. Even if you pay more, you will get a higher premium amount in term insurance.

6. Tax Deduction Benefits:

You have to pay tax but you get TAX Deduction benefits in term insurance. Under section 80C Income Tax Act 1961 you get TAX Deduction Benefits from 1 lakh to 1.5 lakh. If you die, your nominee will not be tax-free as per section 10-10D of the Income Tax Act 1961. Before you take Term Insurance compare many companies and choose the right one.

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