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What is Term Insurance?
Phrase insurance is explained below for your benefit should you be confused about the term. Term life insurance can be considered a contract between the policyholder (insured) and the insurance company, with the latter promising to pay out a set amount to the former in the event of the former’s untimely death. When considering your long-term financial security, you will find that term plans are crucial.
You should also know that term insurance is the most basic type of life insurance and provides complete financial security for your loved ones in the face of life’s inevitable uncertainties.
In the event of untimely demise during the policy period, your loved ones will get the life cover or sum assured according to the terms of the term insurance plan you purchase. Explain what term insurance is and all the ways it can help you.
What are the Key Features of Term Insurance?
So that you know what a term life insurance plan is, you can learn more about how it helps you and your family by looking into the policy’s features and advantages. What follows are some of the essential features and benefits of term insurance:
Cover Against Eventualities
If you are your family’s only source of income, arming yourself with knowledge about the term plan early in life will assist you and your loved ones in any financial storms that may come your way. With these term insurance policies, you can get much coverage for a low monthly or annual payment.
Provides Add-on Riders
If you know what term insurance is and decide to purchase a policy, you can add riders. With a higher premium payment, you can add a “rider” to your policy and increase its benefits and coverage scope.
Max Life Accidental Death & Dismemberment Rider (UIN: 104B027V03) and the Max Life Waiver of Premium Plus Rider (UIN: 104B029V03) are both available as add-ons to your Max Life Insurance policy.
Provides Cover for Critical Illnesses
In your 20’s and 30’s, you may think that you will never hurt from a critical illness such as kidney failure or cancer and hence, not pay attention to what is term life insurance means. However, if it can happen, your health will deteriorate, and you may lose your hard-earned savings to get the compulsory treatment. Although the regular term insurance plan covers a death benefit, you can boost their coverage with a deprecatory/critical illness rider.
As the name suggests, a critical/deprecatory illness rider provides additional benefits when attached to your term insurance policy example, if you get to identify with an illness covered under the rider, a lump sum amount will pay to you to avoid any financial setback that your family may have to face for getting the treatment.
Cover for Accidental Death or Disability
Accidents can happen anywhere and anytime. Depending on the strength, you may need a significant prize for the incurred medical compensation and expenses for the loss of income. Knowing the term insurance and investing at the right time helps you tackle such situations with accidental death or disability rider.
Offers Tax Benefits
You, the taxpaying public, may wonder, “What are the tax benefits of term insurance?” The premiums you pay for a term insurance policy may be deductible from your taxable income under Section 80C of the Income Tax Act-1961. A bonus can qualify you for tax breaks of up to Rs.1.5 million. In addition, under Section 80D of the Income Tax Act of 1961, you can deduct the premium you pay for critical illness insurance.
Tax benefit as per prevailing tax laws
Include Multiple Payout Options
Suppose you notice your family members do not have the necessary know-how to handle a large amount of money as they may find it challenging to use a lump sum amount they receive under your term insurance policy. In that case, you can choose from multiple payout options with the Max Life term insurance plan.
For instance, you can choose options for term insurance plans like the Max Life Smart Secure Plus Plan[104N118V01], created to keep your unique financial security requirements and enable a reliable support structure for emergencies.
The Max Life
Term insurance Smart, safe Plus Plan also offers options of two death benefit variants and comes backed with features such as the return of premium. Besides, the term plan meaning financial protection, also includes inbuilt benefits like cover for terminal illness. When you understand the term insurance and create prudent choices, you can be assured that your insurance needs are completely covered.
How Can you purchase Term Insurance?
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