What is Term Insurance and why is it important to safeguard your family?

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Life can be unpredictable and uncertain at times. It is not easy to know as to what lies ahead of us. To guarantee your family's financial stability, while you're away, one of the wisest decisions, is to buy a Term Insurance Plan.

Let us discuss why?

Every family needs a term insurance policy because of the quickening pace of life and growing number of uncertainties. A term insurance plan will help the family deal monetarily.

With time, insurance companies are creating policies that meet the needs of a broad range of people in order to meet the growing demand for life insurance. That is why, choosing the best strategy which matches your needs & goals can occasionally be difficult. The best option for the general public is a term life insurance policy, in order to make things easier.

In fact, a term insurance plan is considered as one of the most basic financial necessities of life. Multiple features and benefits coupled with affordable premiums and riders makes term insurance a must-have for everyone.

Why Term Insurance?

Term insurance is a type of life insurance that offers your family, financial security for a predetermined amount of time, or "term," of years. If the insured passes away during the policy's tenure, a death benefit is given to the nominee.

Because there are so many insurance choices in the market, most consumers tend to overlook the most basic types of insurance. Term insurance being one of the most basic types of insurance, gives the policyholder's family financial security as well as life insurance. The purpose of term insurance is to safeguard the policyholder and his or her family by making sure they are safe, even at an unfortunate time.

Owing to the many intrinsic advantages of life insurance at the lowest possible cost, income tax advantages and ultimately for the peace of mind regarding the safety of our loved ones, term plans are appealing to everyone as life insurance awareness grows. The cost of the payment is negligible when weighed against the advantages of a term life insurance plan.

Thus, getting a term insurance at an early age offers you multiple benefits. Let us discuss some of them in detail-

Top Benefits of Term Insurance

Reasonable Premium, High Sum Assured

The primary benefit of having a term insurance is that one can avail a high-value life insurance policy by making a reasonable premium payment on a term insurance policy. Payments for premiums can be made regularly, biannually or annually.

The family members of the insured individual will receive the amount assured as a pay-out in the unfortunate event of the insured individual. A lumpsum amount, a monthly or annual income, a mix of a lumpsum and an income, or an increasing income at the start are all options available to the policyholder. This will assist in meeting financial requirements and cost of living obligations, among other costs.

Thus, with a minimal amount of premium, one can avail a high sum as a benefit at a later stage of their life.

Various Covers- Critical Illness Coverage, Accidental Death Benefit, Terminal Illness Coverage

One can avail various benefits with a term insurance plan like critical illness coverage, accidental death benefit, terminal illness coverage etc. It is very important to have a term insurance plan for various critical diseases like cancer, kidney failure or a heart attack as their treatment is quite expensive. In order to avoid facing any financial hardship, it is important to avail a term insurance policy.

When a critical illness is diagnosed, the critical illness rider offers an extra benefit in the form of a lump-sum payment, ensuring financial security. Also, in case of any disabilities, you are protected by the accidental disability benefit from a temporary or permanent disability that comes along with mis happenings.

Tax Benefits

Along with premiums paid for critical illness benefits under Section 80D, you can receive tax benefits on premiums made under Section 80C. In accordance with Section 10 (10D) of the Income Tax Act of 1961, the lump sum amount received by nominees as the sum assured or funeral benefit is also exempt from taxation.

Death Benefit Pay-out Options

A term insurance plan provides your dependents monetary support as they may receive a lumpsum amount which will help them in, managing financial obligations. With a term insurance plan, your family is not void of the financial support which was initially provided by you.

Some term insurance plans also offer you the choice of receiving a monthly payment in addition to the lump sum death benefit. Your family might find it simpler to handle the usual expenses with this monthly income.

Benefit of Add-on Riders

To ensure that you get maximum benefits from your coverage, term insurance provides a variety of riders, including money-back, critical illness, accidental death benefit, specific disease riders and waiver of premium in case of critical illness or disability riders.

How mastertrust can help you with Term Insurance?

Term insurance policies are very important as the coverage amount is sufficient to make up for a sizable component of your lost income. Plans for term insurance provide financial security for the complete family in the unfortunate events. Additionally, you can purchase optional security for fatal accidents or critical illnesses. You are protected for a sizable amount of time, and the rates are reasonable.

Buying term insurance at an early stage of life is a smart choice. So, if you are looking for a term insurance plan, connect with mastertrust today. Our experienced professionals will help you in assessing the best term insurance plan for you, understand all its aspects and secure your future.