Buying a life insurance term plan is one of the most crucial financial decisions in life. Having a term life insurance policy to secure you and loved ones financially enables you to prepare against any unforeseen events in the future. In case you are the only breadwinner for your family, and something happens to you, the life insurance term plan will help your loved ones take care of their needs.
Thus, the least you can do in your lifetime is to secure the financial future of your loved ones by buying a life insurance term plan. Besides, having a term life insurance policy is desirable, in particular, life instances wherein you need significant financial assistance to support your cause. Here are a few scenarios that reiterate the importance of having a life insurance term plan –
- Accidental Injuries
Accidental injuries can happen to anyone. Take road accidents, for example. According to the 2018 report on road safety by the World Health Organization, India accounts for approximately 6% of the total road accidents in the world, even though the country has only 1% of the world’s vehicles. Sustaining injuries due to an accident, you would not only have to pay for the treatment expenses but also take care of the daily expenses out of your pocket. This is where having a life insurance term plan comes into the picture.
Popular life insurance term plans from reputable insurers such as Max Life Insurance offer an additional rider coverage against accidental injuries and dismemberment so that you remain financially protected against any injuries and can pay for the expenses without hurting your savings pocket.
- Diagnosis of a Life-threatening Ailment
In today’s day and age, the treatment of severe health issues such as renal failures, cancer and cardiovascular problems has become steep, so much so that you cannot pay for their expenses without burning a hole in your pocket. Hospitalization expenses (both pre-and post-hospitalization costs), cost of medicinal treatment and surgical correction (if needed), if you are diagnosed with a life-threatening ailment including cancer, can quickly increase manifold. In the absence of adequate savings, you may have to opt for a sub-par treatment.
There are different types of life insurance policies plans that offer financial assistance in case you are diagnosed with a life-threatening ailment, in the form of critical illness cover. The critical illness cover is either available as an in-built feature in leading life insurance term plans or as a rider add-on. Either way, the critical illness cover provides a lump sum benefit immediately after diagnosis of cancer and any such life-threatening ailment, so that you can opt for the best possible treatment without worrying about the expenses.
- Need to Save Tax at the End of Fiscal Year
Tax planning is an exercise that is crucial for every salaried and self-employed individual. Otherwise, you may have a heftier tax liability that could put a severe dent in your savings. As part of your tax planning exercise, it is essential that you opt for financial instruments that offer both excellent tax-saving benefits along with other benefits.
Thus, opting for a term life insurance policy enables you to financially secure your loved ones and yourself against life’s uncertainties. At the same time, the life insurance term policy offers tax deductions up to Rs. 1.5 lakh on the premium paid under Section 80C of the Income Tax Act 1961. At the same time, the death/maturity proceeds from the term life insurance policy are tax-exempt under Section 10(10D) of the Act.
- Sudden Demise of the Breadwinner
Life’s uncertainties can quickly derail your plans and expose your loved ones to financial and emotional bereavement. As your family’s primary breadwinner, you may leave no stone unturned in providing for your family. However, if you are rendered incapable of supporting your family, your loved ones would have no one else to rely upon for support.
Having a life insurance term policy would enable you to create a robust financial safety net for your loved ones. In case of your untimely demise, the life insurance term plan will help your grieving family to cope with the loss and enable them to stay on their feet and work towards their goals, just like they would have had in your presence.
Your family is your most treasured asset, and you would do everything in your power to see them thrive. However, life has its way of derailing even the most straightforward of plans. It is where you need to take an extra step and create a robust safety net for your loved ones so that they can deal with life’s problems in your absence. With a life insurance term plan in place, you can make sure that your family continues to work towards accomplishing their dreams, even if something were to happen to you. Assess your financial needs and opt for a life insurance term plan as soon as possible to secure life-long peace of mind and financial autonomy.