Every day, there is a change happening in our world. In fact, the changes are so profound and so quick that most people don’t even have enough time to process this change. However, in this day and age when you're busy trying to keep up with everyday demands, you seldom have the time to think about what might happen well into the future—or for that matter even the very next day.

Having said that, no matter how uncertain "the future" might be, you would still want to do everything in your power to ensure that your loved ones get there safely and securely. Financial planning forms an integral part of this planning process. It’s essentially a team effort because any plans you make don't just affect you but your entire family on the whole. If you’re keen on protecting yourself and your family from future uncertainties, the key is to have a well-designed financial plan in place.

Insure your most valuable assets – Your Family & Loved ones!

Ask yourself; if you weren't around, would your family be able to cope financially?

For tackling life’s various probabilities & ambiguities, a term insurance plans going to have to be an integral part of the decision making the process. Ergo, term insurance is a type of life insurance policy which provides a set cash lump sum in case something unexpected were to happen to you. It’s a pure protection plan that is generally taken for a specified period, called the policy plan term.

Organizing and anticipating your family's present and future needs is imperative as it can safeguard your family. By providing much-needed financial support to your loved ones if something untoward were to happen to you, a term insurance plan can help ease the financial strain on your loved ones by helping pay for major financial commitments. Needless to say, of all the ways to show your loved ones how much you care, securing their financial future by getting yourself insured is possibly the most practical thing you can do for them. This, in turn, will go a long way in ensuring that your family continues to live the life you have always planned together.

Term insurance – the benefits of having one

Regarded as a simple and affordable form of insurance, term insurance usually offers you financial coverage for a specified period of time. In legal terms, it’s a binding contract between an individual i.e. you and an insurance company where you have the option to choose the amount you want to be insured for as well as the period for which you’re seeking a cover. In exchange for this coverage, you’re required to pay a certain sum called premium on a regular basis (monthly, semi-annually or annually). In case something unfortunate were to happen to you during this coverage period, the insurance company will be liable to pay out a lump sum to your listed beneficiaries.

Needless to say, term insurance is a must-have and should preferably be a part of everyone’s insurance portfolio. Here are a few pointers on why you should look to purchase a term insurance policy:

1. A term plan is in essence, a pure protection plan and is generally taken for a specified period, called the policy plan term. The premiums are usually very low and the benefit under such a plan is triggered only if you happen to meet with an untimely demise.

2. They are designed purely to safeguard your family’s financial future while the premium also tends to remain unchanged throughout the term of your policy. The peace of mind knowing that your dependents will be taken care of if you are no longer around makes it all worth the trouble.

3. Term insurance premiums paid are tax-exempted under section 80C (up to Rs. 1,50,000) of the Income Tax Act, 1961. Further, it also yields tax-exempted income when the maturity claim/death benefit is made payable under Section 10(10D) of the Income Tax Act, 1961. *

4. Term insurance plans often come with the option to attach riders (add-on's) which offer benefits over and above the standard policy at a nominal cost. Riders such as permanent or partial disability rider, critical illness rider, and waiver of premium, among others help add substantial value to the existing life cover.

5. One of the biggest advantages of opting for a term insurance plan is that it offers a large amount of coverage in exchange for a relatively lower premium. Get insured today so that you can worry less and live more.

The Bottom Line

Tomorrow is often brighter for those people who plan today how to make it happen. The convenience, financial security and peace of mind that having term insurance bestows upon you is simply unbeatable as it allows you to live the life you want to live – knowing you’ve made plans to secure your family’s future. You don’t know what tomorrow holds, but a term insurance plan can help protect your family and preserve your wealth from an uncertain future.

*Disclaimer: Tax laws are subject to change. 

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What is Term Life Insurance Plan – Here’s all you need to know!

Quick Tips to Reduce the Premium for Term Plans

Top 10 reasons why Term Insurance Plans are must to have

Term Plan – An Ultimate Guide for Selection

AN Jun 87/18

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