With life’s uncertainties, forecasting what tomorrow may bring can feel like guessing next week’s climate. Therefore, investing in term life insurance comes down the line as a priority. Recently, term insurance has become a popular option for those looking to secure their and their family’s financial position down the road.
Records show insurers collected a staggering 6.93 trillion Indian rupees in premiums for such plans just last year alone. Let’s find out what explains the term insurance plan‘s growing ability to capture people’s interest and investment.
How Does Term Plan Help You Become Future-Ready?
A term insurance policy offers coverage for a specified period or term only. For cases of unforeseen events, they offer financial coverage for your family members. Below are a few features of term insurance plans that make them investment-worthy:
- Tax Benefits
Insurance premiums paid annually qualify for tax deductions under Section 80C. This shields policyholders from taxation up to the limit of ₹1.5 lakhs per financial year. Within this plan, both short and lengthy premium instalments ensure coverage remains available should an unexpected event occur.
- Investment Potential
Another significant feature of term insurance plans is that they are available with combined benefits. Hybrid-term insurance plans like ULIPs invest a portion of your premium in the market. They potentially generate returns that increase the sum assured over time.
- Smart Investment Move
Term plans prove pocket-friendly. They offer the flexibility to customise coverage amounts and premium payments combined with value-added riders. In addition, they are a mighty shield for unexpected life events and healthcare emergencies.
Besides death benefit coverage, opting for supplements within the policy period can work as both a safety net and a long-term savings instrument.
How to Find the Best Term Insurance Plan?
With the various options available, picking the proper insurance plan can seem slightly perplexing. Following are the factors you may want to consider:
- Coverage Amount
Your financial commitments can help you ascertain how much coverage is necessary. This covers outstanding loans and home loan instalments, as well as potential costs such as your offspring’s teaching.
- Policy Term
Choosing a term insurance plan that aligns with your longstanding aims is also significant. Whether you’re searching for protection until your retirement age or until your children are self-sufficient, opt for a period that meets your demands.
- Premium Affordability
Securing enough coverage and ensuring that the premiums to be paid fit within your budget is essential.
- Additional Riders
Consider opting for additional rider benefits to enhance your term insurance plan coverage further. You can add critical illness, accidental death, and other rider benefits. Additionally, a waiver of premium will provide added protection against unforeseen circumstances.
- Reputation of the Insurer
Conduct detailed research and then evaluate the reputation of the insurance company. Look for reviews, ratings, and testimonials from existing customers to analyse the insurer’s credibility and customer service quality.
- Claim Settlement Ratio (CSR)
Check the claim settlement ratio (CSR) before selecting your insurance-providing company. A high CSR suggests that the insurer is reliable and efficient in settling claims. Knowing this will ensure that your beneficiaries receive the promised benefits hassle-free.
Have You Made Your Decision Yet?
There are numerous plans available, each with unique characteristics, but only one is the best term insurance plan for you. Selecting the optimal option demands scrutinising contrasting coverage, benefits, and carrier reputations.
When you opt for a leading insurance-providing company like Canara HSBC Life Insurance, you can secure term insurance seamlessly. They offer various offline and online insurance plans at competitive prices, and you can secure insurance of up to 5 crores.
Visit Canara HSBC Life Insurance’s online website to find your ideal term plan today!
