Top 3 Reasons You Should Purchase a Term Plan

The Premiums Are Affordable

 

A term plan gives you a large coverage amount at a lesser cost.

 

This is one of the key reasons to purchase a term plan—you pay less and get more. Term plans are budget-friendly. They are pure protection plans which provide financial support to your family (nominee) in case of your (life assured) demise during the policy term..

 

It Offers Peace of Mind

 

Term plans are made to give you peace of mind. Life is full of surprises, and we can’t always know what will happen tomorrow. A term plan makes sure that if you’re not around, your family can still take care of their financial needs.

 

They won’t have to worry about things like school fees, rent, or bills. The sum assured can help them cater to their financial needs . This peace of mind today is why purchasing a term plan is important.

 

You’ll feel better knowing your family is financially secure , no matter what happens.

 

It Provides Tax Benefits

 

A term plan also helps save on taxes. Under Section 80C of the Income Tax Act, you can get deductions on the premium paid, up to ₹1.5 lakh annually, under old tax regime.

 

Also, the amount your family receives after your death is tax-free under Section 10(10D). These benefits help reduce your overall tax liability.

 

So, in addition to providing financial protection to your family, a term plan also helps you save money. This dual benefit is one of the practical reasons to purchase a term plan without delay.

 

Conclusion

 

With benefits such as affordable premiums , tax advantages etc a term life insurance policy is a suitable approach for individuals who want to secure their family's future.. It gives your family peace of mind knowing that they will have financial protection in your absence.. Buying a term plan is an easy and wise choice to provide for your family.

 

FAQs

 

1. Why one should purchase term plan?

   
   

   A term plan is like a safety net for your family. . It is a simple way to make sure your loved ones are financially secure, even when you are not around to earn money for them.

   
   

2. What are the benefits of a term plan?

   
   

   The main benefit of a term plan is that it gives your family financial support when you are no longer around.. In case of your demise during the policy period , your nominee gets the sum assured which can be used for their daily needs or considerable costs like school fees etc .

   
   

3. Who should buy a term plan?

   
   

   Anyone who has family members depending on their income should buy a term plan. This includes parents, salaried workers, and even young people who support their loved ones.