Why Smokers need to invest in a Term Insurance Plan

A tiny cigarette doesn’t cost a lot. However, your smoking habits can cost you your health.

Every smoker is not the same though. It is possible that you smoke but maintain a healthy lifestyle. However, whether you smoke rigorously or occasionally, it is recommended to buy term insurance to secure your loved ones in your absence.

Before you buy term insurance, you must learn everything about the policy. Understanding the details about term plans would help you make an informed decision. A buy term insurance specifically aims at providing financial security to the nominees in order to help them survive after the demise of the policyholder.

Here are top benefits offered by term plans.

1. Affordable cost

The key benefit of an online term policy is its affordability. When you buy a term plan online, the premium rate is lower. Additionally, due to the savings on distribution cost, documentation, logistics, and stationery, the price of the online term policy is typically lower than that of offline term plans.

2. Life coverage

Term plans solely work towards the financial protection of the family members. On the death of the life assured, term policies provide a death benefit, which is an amount paid to the nominees of the life assured. This amount can help the nominees to meet their regular expenses as well as accomplish their life goals in the absence of the life assured.

3. Tax saving benefits

Under Section 80C of the Income-tax Act, 1961, the premiums paid towards the policy are eligible for tax deductions. The premiums are deductible up to Rs. 1,50,000 on taxable income. The death benefit is also eligible for tax benefit under Section 10(10D) of the Income Tax Act, 1961, subject to provisions stated therein.

To sum up, a term policy is a recommended product. While choosing the term policy, see to it that you disclose your smoking habits. Non-disclosure of these habits could impact the pay out of the term insurance benefit. In case you’re unable to choose the right term insurance policy for yourself, take help of a term insurance premium calculator to understand your need and plan accordingly.