Due to the wide variety of insurance plans, people are confused and leave the idea of buying a specific insurance plan. This article gives information on one of the best insurance plans, named the Term Insurance Plan.
A term insurance plan is a simple and straight plan which guarantees to pay a fixed, defined sum of money, called the sum assured, if the policyholder expires during the plan term.
Term insurance is the type of life insurance plan that offers coverage for your life. Furthermore, we are going to talk about the features of term insurance plans.
A quick look at the features of term insurance plans
The following are the features of the term insurance plan: If you want to invest in this type of insurance plan, then read the following features.
1. Get more
Term insurance plans are now available at low premium rates, which means this is an affordable plan for long-term coverage at a low premium.
Many uncertainties occur in human life, such as permanent and temporary disability, critical illness, and ultimately death. If you want to increase the efficiency of your term insurance plan, then there is an option available to attach the rider to your term plan.
For example, if you attach the critical illness rider to your current term plan, then you will be entitled to receive the sum assured after being diagnosed with the critical illness. It is suggested to select the riders according to your requirements to make the life cover more suitable and helpful for you.
3. Enhanced the cover
The best thing about the term insurance plan is that it enhances the life cover. There are also some insurance companies available that provide the flexibility to enhance the life cover at the critical stages.
This way also makes it possible for you to start with the modest cover and enhance it as the responsibilities increase, as well as the ability to pay the higher premium.
4. Tax exemption
Premium paid for the different types of insurance policies are exempted from the maximum tax up to the amount of 1 Crore term insurance under the section of the income tax act.
The claim amount provides to the beneficiaries and handing the bonus to the policyholder is tax-free under the income tax section.
5. Secured your loans
The term insurance plan also helps you if you take a bigger loan, such as a car loan, housing loan, etc. In this way, it is beneficial for those who have to invest in new ventures by borrowing the loans at a higher interest rate. Such a person can also get coverage on the risk of their death before repaying the loan by buying term insurance.
This article highlights the key features of the term insurance plans. It is concluded that the term insurance plan comes with an array of features that benefits you. If you also want to enjoy the above-mentioned features of the term insurance plan, then go and buy this plan now.