Importance of Term Insurance During A Pandemic

Our fight with the on-going pandemic is not yet over. It has wreaked havoc across the globe and left people suffering mentally and financially. During such time, the importance of health insurance and term insurance plans is beyond explanation. While most people would solely rely on health insurance to cover the expenses arising from the treatment and hospitalisation, in our opinion, it is best to have a term insurance cover as well.

Below we have enlisted the benefits of buying a term insurance plan during a pandemic:

• Financial Security To Your Loved Ones

The primary purpose of the term insurance plan is to secure your family’s financial future if anything were to happen to you. Dreadful times like the one we are facing at the moment are quite uncertain. You never know what’s written for us tomorrow.

If you are the sole income earner in your family, a health insurance plan will not suffice. Sure the policy will take care of sudden medical contingencies, but what happens to your family after you die?

Therefore, having a term insurance plan will provide much-needed financial security to your loved ones after your sudden demise.

• Extensive Coverage at a Nominal Price

Term insurance is the most affordable life insurance product available in the market. That means you can secure some of the best deals in terms of coverage when it comes to term insurance plans. You can buy a term insurance coverage of up to Rs. 1 Cr for a very affordable premium rate.

Besides, you can enhance the scope of your policy with rider benefits such as critical illness cover, accidental death benefit, waiver of premium benefit, the return of premium benefit, and so on. However, make sure you only opt for those that you think may come in handy in the future. Note that each rider benefit you select will add a nominal amount to your current premium charges.

You can use the term insurance calculator to determine the cost of your desired term insurance coverage along with the rider benefits.

• Term Insurance Tax Benefits

Much like any other insurance instrument, term insurance offers several tax benefits. The premiums paid towards the policy can be claimed for tax deductions under Section 80C of the old income tax regime. Further, the death benefit received by the family members after your death is tax-free under Section 10(10D) of the Income Tax Act, 1961.

Besides this, if you have term insurance with critical illness benefit, you are eligible for additional tax deduction under Section 80D of the Income Tax Act.

So, you see, term insurance is quite a valuable investment during a pandemic.

Lastly,

If you are looking to buy term insurance in India, consider purchasing the policy online. Several insurers provide basic term plans along with a wide range of rider benefits online on their website or the insurance app. However, make it a point to compare these policies before you buy one. Online comparison of term insurance will allow you to make an informed decision based on your requirements.