Today, having financial security for yourself and your family is equally important as earning. Wondering why? We do not know what life holds for us, and that’s why we have to be prepared for it. Having a financial corpus ensures that your family is financially protected even when you are not there to provide for them.
Investing in a term insurance plan has become crucial today, especially for working professionals. Having invested in a term insurance plan provides you and your family with financial security and ensures that you can achieve your goals and dreams seamlessly and without any financial restrictions. If you are still thinking about why a term insurance plan has become a necessity today, you have come to the right place. This article tells you about 5 key points to buy the best term insurance in India for working professionals.
- Financial Security
Having a financial backup ready in advance is necessary for the coming years. This ensures that you and your family are secure and do not face any hassle, even in the worst-case scenarios, such as the unforeseen and untimely policyholder’s demise.
- Tax Benefits
Another key reason working professionals should invest in a term insurance tax benefits. The premiums paid by the policyholder for term insurance are eligible for tax benefits under Section 80C of the Income Tax Act, 1961. The policyholder can claim upto Rs. 1.5 lakhs of tax benefits in one financial year. However, tax laws are as per Income tax Act, 1961, and subject to change from time to time.
- Secure Your Assets
There may be unforeseen and unavoidable situations wherein you might have to take a loan because of a financial emergency. In case of an untimely policyholder’s demise, the financial burden of paying off the debt might come on the family. This might result in your family paying off the debt against valuable assets. Investing in a term insurance plans saves you from losing your valuable assets and helps your family pay off the debt seamlessly.
- Rider Benefits
Instead of investing in multiple insurance policies to avail additional benefits and get extensive coverage, the policyholder can opt for rider benefits. A rider benefit covers the additional benefits and offers vast coverage under one term insurance policy. The policyholder can opt for various rider benefits, such as accidental death rider benefit, waiver of premium rider benefit and more. However, riders are not mandatory and are available at an additional cost.
- Cover Critical Illnesses
As we grow old, the chances of getting diagnosed with a critical illness, such as cancer, etc., also increase. Moreover, we know that the cost of getting a critical illness treated is increasing day by day, which might create a financial constraint for our family and us. A term insurance plan covers the majority of the critical illness and ensures a financial backup is ready. Moreover, it also ensures that you do not have to worry about how you will be paying for your medical treatments, and you can fully focus on your recovery.
You now know about 5 key reasons to invest in the best term insurance in India, especially for working professionals. Talking about investing in the best term insurance, you should prefer going for a trusted and leading insurance provider.