Term insurance is a necessary financial tool that secures the future of your loved ones. It provides essential financial support in the event of your unfortunate absence and offers you peace of mind, knowing that you have taken steps to protect your family’s financial well-being.

Let’s see the advantages of term life insurance and understand why it is a vital component of your financial planning.

Top Reasons Why Term Life Insurance Plans Are a Must-Have

Below are some reasons why term insurance is necessary:

Financial Security for Loved Ones

Term insurance provides crucial financial security for your loved ones by protecting them from financial hardships in your absence. The life coverage^` received from the plan can help them manage day-to-day expenses, live without financial stress and plan for major purchases or future needs.

Tax Benefits

Term insurance plans offers tax benefits under The Income Tax Act, 1961. You can claim a deduction of up to ₹ 1.5 lakh per annum for the premiums paid towards your term insurance plan subject to conditions prescribed under Section 80C^* of The Income Tax Act, 1961. Additionally, the payout from the term insurance policy is exempt subject to conditions prescribed under Section 10(10D)^* of The Income Tax Act, 1961

Peace of Mind and Long-Term Planning

Term insurance provides peace of mind by ensuring that you have planned for the long-term needs of your family and yourself. With high sum assured amounts, it helps combat inflation and addresses future financial requirements, allowing you to leave a legacy for your loved ones.

Survival Benefits

Typically, a traditional term insurance plan does not offer any maturity benefits if you outlive the policy term. However, some plans, such as return-of-premium term plans, provide a portion of the premiums paid as a survival benefit. This feature can help you address long-term needs and recover the cost of your term plan.

Low Claim Rejection

Term insurance plans have a low claim rejection rate, and claims are generally processed and settled quickly, ensuring your family’s financial security. As long as you have provided truthful information about your health status, lifestyle habits and other details on your application, your family will receive the claim without issues.

Affordable Premiums

Term insurance is available at an affordable cost and offers excellent value. It provides flexible premium payment options that can easily fit into your budget, making it a cost-effective choice for protecting your financial future.

Ease of Purchase

Term insurance plans can be purchased quickly and conveniently. You can buy them online from the comfort of your home or by visiting a branch. The process is straightforward and hassle-free, requiring only routine identity and address documents with no lengthy paperwork involved.

How Do You Buy Term Insurance Online?

Below are the steps to purchase term insurance online:

Step 1: Calculate Your Term Insurance Premiums

Start by estimating your term insurance premium based on factors such as your age, lifestyle habits and coverage needs. You can use an online term insurance calculator to get an accurate estimate.

Step 2: Fill Up the Application Form with Your Personal and Professional Details

Complete the application form with your personal and professional details, including your name, age, occupation, city of residence and any other required information.

Step 3: Review the Application Form and Make a Purchase

Carefully review your application form to avoid any errors. Once reviewed, you can proceed with the purchase by paying the premium online.

Reasons to Buy Term Insurance Online

Below are some reasons to purchase term insurance online:

Cost-Effective

Buying term insurance online often provides better deals, with many insurance companies offering discounts for online purchases. This can lead to higher savings.

Customisations

You can easily add riders to your term insurance plan for a nominal cost. This allows you to customise the policy to meet your specific needs.

Convenient Buying Process

Online purchases are quick, smooth and seamless. You can complete the process from your laptop, smartphone or tablet at any time during the day.

Zero Paperwork

You can submit soft copies of your documents when purchasing a term insurance plan online. This eliminates the need for physical paperwork and speeds up the process.

Conclusion

Term insurance offers numerous benefits, including financial security, tax benefits, additional protection through riders and peace of mind. This single financial product can simplify various aspects of financial planning and address multiple needs. Hence, buying a term insurance plan as soon as possible should be a priority for every individual.