15/11/2022
"NEVER MIX INVESTMENTS WITH INSURANCE!"
Term insurance plans are life insurance plans which promise to pay a benefit only if the insured dies during the term of the policy. There is, usually, no maturity benefit payable under the plan. Term plans are, therefore, called pure protection plans.
1. Term life insurance is a pure life cover that focuses on offering your dependents the sum assured in case you were to die.
2. Term insurance is known for providing life cover at affordable premiums. Term insurance plans are considered the simplest form of insurance hence the affordable premiums.
3. A term plan offers a much higher sum assured so that you can leave your family and dependents enough money that they don’t go through financial hardship in your absence. Term plan of a 30 year old person will only cost around Rs. 10,000 to Rs. 18,000 whereas ULIP (Unit Linked Insurance Plan) of Rs. 2,00,000 will cost around Rs. 20,000
4. Term Plan has multiple tax benefit: a) Section 80C: Under this section, you can claim a deduction up to Rs 1.5 Lakhs. b) Section 10 (10D): The benefit can be claimed while claiming the pay out by the nominee. The entire amount is completely exempted from taxes.
5. A Term Plan usually has a very low Claim Rejection Ratio which means there is very less chance of the claim getting rejected by the companies.
If you've any confusion in understanding, please feel free to DM me, I'll be glad to help.
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Tags: insurance tips
