What are the benefits of a single premium term insurance plan?
Overall, there is absolutely no doubt about the fact that a single premium term insurance plan offers plenty of benefits. Some of these term insurance benefits are briefly explained below.
• It eliminates the chance of policy lapses
In addition to removing the hassle of trying to keep track of your periodic premium payments and allowing your family to meet their life goals if you’re not around, these term life insurance plans completely eliminate the chances of your policy lapsing. Since the premium payment is made up front, you don’t have to worry about making regular payments on time, and your term insurance policy stays active till the end of its tenure.
• It offers tax benefits
Under Section 80C of the Income Tax Act, 1961, the premium paid for term life insurance is eligible for deduction. Furthermore, maturity benefit, death benefit and surrender benefit are eligible for tax benefits as per Section 10 (10D) of the Income Tax Act 1961. The above deductions and exemptions are subject to the provisions stated in the Income Tax Act 1961
Single premium term plans can help your family achieve their life goals without any trouble, even in case of your unfortunate demise. As with any insurance policy or an investment option, before choosing a single premium term insurance plan, it is always a good idea to examine the features and benefits of the policy, and to compare the plans available before opting for one. Now that you are aware of everything there is to know about single premium term insurance plans, all that you need to do is go ahead and get one for yourself.