If you are looking for the right time to start with financial planning for yourself and your loved ones, then let us tell you that you should start it as soon as possible. Investing in a term insurance plan is one of the best ways to provide financial security and secure your and your family’s future. This further helps you fight the rising cost of inflation and save a lump sum amount for what is coming. The Covid-19 impact on a global level has made us realise that having a financial safety net is really important. You never know what you and your family might have to face. Another key feature is that you can invest in a term plan online. So, you can be at the comfort of your home and choose an ideal term plan for you and your loved ones.
This article is a complete guide to help you when you plan to invest in a term plan in 2022. Let us start by understanding what a term insurance plan is.
What is a Term Insurance Plan?
A term insurance plan is the simplest form of insurance that provides the policyholder and his family with financial security and lump-sum death benefits. It ensures that you and your family are financially backed even in the worst-case scenarios.
Let us now see a few benefits of buying a term plan.
Benefits of a Term Plan
- Financial Security to the Policyholder
Term insurance provides a financial backup to the policyholder and his family and ensures that they are able to achieve their goals without any restrictions or hassles. Even if the policyholder is not around, his family will be well protected and will not have to face constraints in future.
- Helps Fight Inflation
The past few years have seen a rise in the cost of living and inflation rates. This had it difficult to manage day-to-day expenses and save an ideal amount for the future. A term plan helps the policyholder and his family fight off the rising inflation rates in the future and ensures that they will not compromise on life goals because of financial constraints.
- The benefit of Tax Deduction
Another key benefit of buying a term plan is tax deduction benefits. The term plan offers 1.5 lakhs of tax deductions to the policyholder in one financial year under Section 80C of the Income Tax Act, 1961. However, tax laws are subject to change from time to time.
- Your Valuable Assets Are Secure
We never know when we might have to take a loan in case of a financial emergency. Moreover, we do not know when we might face an untimely demise. In such cases, the burden of paying off the loan may fall upon the policyholder’s family. Paying off a loan can be difficult and stressful. The policyholder’s family might have to pay off the loan against their valuable assets. A term plan ensures that your family does not face any hassle while paying off the loan even in your absence and do not have to give up on their valuable assets.
Buying a term plan benefits has multiple benefits. Moreover, buying the plan online has made it a lot easier for us today. We can buy the plans like savings plan, investment plan and mnay more by visiting the insurance provider’s official website or contacting their official agents. While there are numerous insurance providing companies available today, we should go for the one that is trusted and has a good claim settlement ratio.