5 Ways Term Insurance Makes Future Planning Easier

Everyone imagines a nice and happy life with their family members,but alone imagining one will not get you there. Life can be uncertain at times, and unless you have planned for your and your family’s fair share of turmoil, getting through the tough times with a smiling face might get very difficult. 

During such emergencies and unprecedented moments, your family will need you just like you will need them. The best way to make sure that you are there for your family in such times and support them financially is by buying a life insurance policy such as term insurance.

An ideal term insurance policy will ensure your family can be financially independent even in your absence but also not cost you a lot premium-wise. It is best if you start early and get your financial plan in order because the earlier you manage to plan your finances, the better it is for your wealth to grow and offer you security on those rainy days.

Term insurance is helpful in more ways than one and is ideal for people at any age and stage in their lives. Here are a few reasons why you too should be considering buying the best term life insurance policy for your family:

1. Protection For You And Your Family

You can be newly married and, in your twenties, or a parent to two kids and in your forties, but it is never too early to be thinking about the best term life insurance policy. If you are an earning and financially contributing member in your family or worse yet, if you are the only breadwinner, then imagine how difficult it could be for them to lose you suddenly.

Not only would your family be emotionally distraught but also be stuck in a financial pickle with liabilities and debts piling on in the future. You can ensure that none of this happens, and your parents, spouse and children live a worry-free life in your absence by protecting them with your term insurance.

2. Affordable Premiums And Payment Frequency

Surprisingly, term insurance policies are very affordable and light on your pocket. Because this issimple and straightforward insurance of the policyholder’s life, the premiums are not too high. Further, if you decide to buy the best term life insurance policy while you’re young and have fewer illnesses or medical history, then your premium will be that much lesser.

Contradictory to this, the older you are, the higher your co-morbidities will be and the more you will end up paying in premiums just to buy a life cover for your family. You can also easily decide if you want to pay your premiums monthly, quarterly, or on a yearly basis.

3. Customizable Insurance With Additional Riders

Once you know what is term insurance and how you can ensure your family is protected with the help of this cover, the next thing you need to focus on is customising your plan with additional riders.

Ideally, you should start by sitting your family down and discussing their needs in the present and expected expenditures in the future. Then, based on what you and your family need, additional riders can make your term insurance solid.

4. Flexible Payout Options For Sum Assured

The payout option you choose can determine how independent your family could be in your absence, and it would be quite an important decision to make. There are usually two types of payout options the policyholder can choose from – the fixed monthly income plan and the increasing monthly income plan.

In the fixed income monthly payout, the beneficiaries of the deceased receive a predetermined amount every month that helps them clear dues and pay off monthly expenses and bills.

However, if you go for the increasing monthly income plan, then the payouts grow annually by 10%, which ensures that your family is not only financially secure but also inflation-proof in the future.

5. Tax Deductions Against Your Premiums

A term insurance policy is not just beneficial as a financial cover for your loved ones but is also useful in claiming tax deductions against your policy premiums. As per the Income Tax Act, you can claim a deduction of up to Rs. 1,50,000 every year, against your life insurance policy.

As long as your annual premiums are lesser than 10% of the cover your term insurance offers, you should be able to get the tax benefit while filing your taxes every year.

The Bottom Line: Secure Your Family’s Future With A Term Plan

If you want to ensure that your family is financially secure through the ups and downs of life, then the best term life insurance policy is what you should be aiming to buy. The future is definitely uncertain for everyone out there but planning your finances in advance and buying term insurance at the right time will give you and your family a safety net to fall back to during uncertain times. Take that first step towards securing your family and gifting them a debt-free future.

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