A term life insurance plan is one of India’s most trusted policies for all the right reasons. It offers a sizable financial cover to the policyholder’s nominees in case of an unfortunate event. When you buy a term plan, it ensures that your loved ones will be financially secured even if you cannot be there for them. Purchasing a term plan is easy. You can use a term insurance calculator to quickly find out the prices and benefits of a policy and buy it online in minutes.
A term policy comes with multiple benefits. Even though it is a pure form of life insurance policy that has no maturity benefit, you can use the offerings of a term plan, which are beyond just getting the death benefit. Read on to learn how a term plan can help you deal with healthcare expenses.
Health benefits of a term life insurance policy
Healthcare cost in India is enormous, and it is only increasing every year. If you are ever diagnosed with a severe medical condition, it can lead to a huge dent in your savings. From hospitalization to medicines, the expenses of treating a critical illness is substantial. However, if you have term insurance, it can cover the costs.
To get the monetary benefit, you have to opt for a critical illness rider along with your existing term plan. Reputed insurance providers in India offer different types of riders, which you can purchase as additional protection. The critical illness rider is one such cover, which takes care of the expenses related to a grave disease. Every insurance company has a list of diseases that they cover under the critical illness rider. If you ever have any of the listed diseases, the insurer pays the entire sum assured. Your family can use this money to finance the treatment and manage the household expenses if you are unable to work during the period. The benefit comes without any restriction.
Other than this, a term plan has many advantages.
Additional plus points of a term life insurance policy
- Monetary support for the family’s healthcare
When you purchase a term plan, the insurer pays your nominees a lump sum in case of your absence due to an unforeseen event. Your nominees can use the money for any purpose. Hence, even if you cannot be there for them, your loved ones will always have the financial protection to take care of their health. From regular medical expenses to opting for surgery, they will never have to worry about healthcare expenses.
One of the best things about a term life insurance is its cost-effectiveness. A term plan offers a lump sum death payout, but there is no maturity benefit. Hence, insurance companies charge an economical premium for the policy. Term plans are the most inexpensive form of life insurance policies available in India.
- Fixed premium
The insurance provider decides the term plan’s premium at the time of policy initiation, and it does not change during the tenure. If you buy the term plan at a young age, you will end up paying a nominal premium, which will be uniform for the entire period of the plan.
- Tax benefits
Section 80C of the Income Tax Act, 1961, allows a tax deduction of up to INR 1.5 lakh every year on the premium paid towards term insurance. Additionally, under Section 10 (10D) of the Income Tax Act, 1961, the death benefit paid by your insurance provider is tax-exempt.
Keeping these benefits in mind, you must invest in a term plan that meets all your financial requirements. An online term insurance calculator can simplify the buying process by helping you compare different policies and determine which one is more suitable.