April 22, 2024

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8 Characteristics to Look for in Term Insurance

life insurance plan.

Agent protects family figures. Life Insurance policy on a desk.

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We all earn and work hard to ensure that our loved ones and we have a secure future and do not have to face the financial burden in case of unforeseen events. But the thought of how our family will manage the financial requirements when we are not there to provide for our family often scares us. Moreover, the increasing cost of living has made it more difficult. That is why having a financial safety net is important in today’s time.

A term insurance plan provides a financial safety net and ensures that you and your loved ones are secure even in unforeseen difficult situations. This article tells you 8 characteristics you should look for when investing in a term life insurance plan.

8 Characteristics to Look for in Term Insurance Plan

1. Affordable Premiums

One of the key features of a term insurance plan is that it is inexpensive. In other words, term insurance offers cheaper and more affordable premiums than other insurance policies, making it easy for anyone and everyone to invest in.

2.Easy to Understand

A term insurance plan is one of the simplest insurance policies and is easy to understand. Moreover, as this policy does not have an investment component, the policyholder can invest in this plan conveniently and seamlessly.

3. High Returns

term insurance plan offers high returns and provides ideal financial security to you and your loved ones. This will help you and your family fight inflation and achieve all your goals and dreams without facing any financial constraints.

3. Tax Benefits

Another key feature ofa term insurance plan is tax benefits. The premiums that the policyholder pays for term insurance are entitled for tax benefits under Section 80C of the Income Tax Act, 1961. The policyholder can claim upto Rs. 1.5 lakhs of tax benefits in one year. However, tax laws are subject to change from time to time.

4. Additional Rider Benefits

The term insurance plan offers the provision of additional rider benefits. The policyholder can choose the rider benefits to avail additional policy benefits and a larger cover. The policyholder can choose from various rider benefits, such as critical illness rider benefits, accidental death rider benefits, etc. Please note that riders are not mandatory and are available at an additional cost.

5. Multiple Payout Options

The term insurance plan offers multiple payout options to the policyholder. In other words, the policyholder can choose how he or she wants his family to receive the death benefits. The policyholder can choose from lump-sum payout options or small and regular payout options, depending on the financial requirement of his or her family.

6.Covers Critical Illnesses

We never know when we might get diagnosed with a critical illness. Moreover, in the past couple of years, the cost of medical treatment in the country has also increased. Having invested in a term insurance plan ensures that you do not face any financial hassle while paying for your medical treatment and can seamlessly focus on your recovery.

7. Flexibility to Pay Premiums

Paying a lump sum amount of premium at once can be of hassle and inconvenience. Term insurance helps the policyholder in this case. This plan offers flexibility to pay the premiums according to what is best suited to the policyholder. The policyholder can pay the premiums quarterly, semi-annual and annual basis.

You now know the 8 significant features to keep in mind while investing in a term insurance policy in India. So, if you have planned to invest in a term insurance plan, we suggest you go for an insurance company that is trusted and provides the best insurance policies, like Bharti AXA. They ensure that you and your family are financially protected and have a backup ready in an unforeseen event. You can visit their official website or get in touch with them for a better insight on term insurance policies in India.