Today, living without any worry and being financially secure is no longer an unachievable dream. This is possible, and you may become financially stable with proper planning and investing in beneficial instruments during an early phase of life.
Your financial goals will change with time. The different financial objectives would include your wedding, education of your children, or your retirement. All these require financial planning to ensure you can meet the goals without any difficulties.
One way to accomplish this is with an online term insurance plan, which helps you financially secure your family against uncertainty in life. A comprehensive term plan safeguards your loved ones under various circumstances.
How does an online term plan work?
Do you know what is term insurance plan? An online term plan works just like regular offline term insurance. You buy the desired sum assured for a pre-determined period at a reasonable premium. In case of an unfortunate event during the policy duration, the insurer will pay the benefits to your nominees.
Your family members will receive this amount as a lump sum on the occurrence of the event. Alternatively, you may choose a staggered payout wherein your nominees receive a certain amountas a lump sum. They get the balance amount at periodic intervals, which helps them to meet their regular expenses without any difficulties.
Features and benefits of online term insurance
Debts are burdensome and significantly affect your financial well-being. If an unfortunate incident occurs, your family will have to pay these liabilities. Without a term plan, they may not be in a financial position to repay these debts and may have to sell their assets. To ensure your family is not left in this vulnerable situation, you must invest in a term plan.
- Provides a higher sum assured
Among the various types of life covers available, term policies are popular primarily because of their cost-efficiency. These policies allow you to avail of a higher sum assured at an affordable premium. While choosing the amount, you need to consider your family’s future financial requirements along with the inflation to provide maximum benefit in your absence. In addition, you must buy insurance early to save on the premium.
- Gives comprehensive coverage through additional riders
Medical inflation has resulted in treatment costs skyrocketing. In case of a diagnosis of a critical illness, you may not be able to afford the treatment expenses. A critical illness benefit rider added to your base term plan will cover such costs, enabling you to procure the best treatment.
Disability rider is another important add-on offered with a term plan. In case of temporary or permanent disability due to an accident, this rider will pay an additional amount. Some insurers may also waive off the balance premiums in such instances.
The term insurance tax benefit is available under Section 80C of the Income Tax Act, 1961. You can claim a deduction of up to INR 1.5 lakh under this section. Additionally, the amount, which your beneficiaries receive is tax-free as per section 10(10D) of the Act. Procuring term coverage when you are young allows you to decrease your taxes and save money for a longer period. However, you should not invest in such coverage only to avail of tax deductions but to financially secure your dear ones.
You may directly buy an online term plan through the insurer’s website. Often, the premium for an online plan is lower than an offline policy. This is because the insurer can reduce costs like commissions and overheads for online plans;you get these savings in the form of a lower premium. Compare the plans offered by various insurers before making a decision.
Ensure your family’s financial stability with an online term plan based on your current situation and needs.