Fatherhood changes men to the extent that they can do anything within their power to give their children the best life possible. Every father is looked upon as a superhero for his children. He is the first person that a child will look up to for inspiration, support, and courage in life. For a daughter, her father is her first love based on which all other relationships will be measured, and for a son, a father sets the standards for how he treats people later in life.
Why not celebrate this International Father’s Day with a gift for your family to be present for them even in worst of the circumstances – a term life insurance. With a term insurance plan, you can ensure that you remain a superhero to your family even after your untimely demise. Term insurance benefits your family by supporting your loved one’s regular expenses and future goals financially.
With term insurance, you can ensure that your kids can get to their education and other goals just as they would have with you around. Other than that term insurance come along with several benefits that we will be talking about below.
Term Insurance benefits
- Low Premiums
The main and foremost benefits of a term insurance plan are that it gives high life cover at low premiums as compared to other life insurance plans, especially if it is bought online because then the benefit of cost saved is transferred to the customer. Furthermore, the younger you are the lower your premiums will be. For instance, if you are a 28-year-old male who does not smoke, you get a sum assured of 1 crore for a premium of just Rs.563 every month under Max Life’s Online Term Plan Plus.
- Tax Benefits in All Stages
Term insurance benefits a policyholder and his family in terms of tax as well. This means that both the premiums and payouts of a term insurance plan offer tax benefits and exemptions under section 80C and 10(10D) as per the Income Tax Act 1961. This is valid for premiums which sum up to Rs. 1.5 lakh per annum and should fulfill the criteria specified in the Act. The benefits and exemption are applicable to the life insurance premiums that are paid for your spouse and/or children.
- Peace of Mind
Term insurance benefits a policyholder’s family members and puts a policyholder at ease because the maturity amount can be either dispersed to the nominee as a lump sum amount and a regular monthly income. At the time of buying itself, you can choose if there should be a regular income payout for the family.
While the lump sum amount will help the family pay off loans and save for future goals, regular income eliminates the need for keeping the money for taking care of daily expenses.
- Add More Covers
A good term insurance plan will come along with optional riders that can help policyholders to improve the benefits on the policy by paying a small charge towards the monthly premiums. These riders can be:
- Waiver of Premium (WoP) Benefit: Enables the policyholder to stop paying premiums in case he/she happens to become critically ill or injured. This will ensure that the policy does not lapse, and the cover continues.
- Accidental Death or Disability Benefit: You receive financial assistance even in case of a disability due to an accident. In case of death, the total death benefit payout increases by the accidental death cover.
- Critical Illness Cover: Receive financial assistance for the treatment of life-threatening diseases like cancer, heart attack, renal failure, etc.
What If I’m Already Covered in a Group Term Plan?
Group plans are usually linked with your employer and change every time your employer changes or when they decide to go with a new plan. Group term life insurance is a good incentive coming from the employer, but it may not always be enough. Moreover, you would want something which remains consistently available for your family regardless of your employment choices.
So, even if you are covered under group term life insurance by the company where you work, it is still recommended for you to look for individual term insurance. You can also include additional benefits like accidental disability, premium waiver, and critical illnesses cover.
Term insurance or Life insurance is important for parents everywhere because the scary fact about life is that it’s uncertain and it’s time for them to start asking themselves, “What if I am not around to support my family anymore? What can I do to ensure that they live on happily and secure?”