Have you been considering opting for a term insurance plan? It’s actually one of the best and smartest financial decisions that you will make in your lifetime. Why so? Term plans ensure adequate financial safety for your loved ones and are hugely cost-effective at the same time. You not only gain mental peace, knowing that they are secure in case of your demise, but also benefit from tax advantages and ample flexibility. So, on that note, let us take a look at why term insurance plans, such as Kotak e-Term Plan, make excellent financial decisions.
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Choosing a Term Insurance Plan Is a Great Move
Selecting a term insurance plan is actually a good move, considering its multifarious advantages. For starters, the best part about these policies is their simple modus operandi. You pay a certain premium amount for a specific duration, and in return, the insurer provides you with a sum assured or coverage amount. If you pass away within the tenure of the plan, the amount is paid to your nominees, helping them stay afloat financially and realize future goals without compromises. So, from a basic peace and financial safety standpoint, it’s a great decision to keep your family secure. Now comes the best part—if you start early, you can actually get a high coverage amount for a relatively lower premium. This is possibly the best thing about choosing term plans.
They have lower premium amounts for relatively higher coverage in comparison to several other life insurance policies. This is because there’s no investment/cash value component to these plans. At the same time, younger consumers are perceived as having fewer risks by insurers, which means that you can secure a lower premium amount for the whole policy tenure with a level-term plan. However, some policies may have increasing premium structures depending on the plan chosen. Even if you purchase a policy later, it will be more expensive due to increased health risks but may still be more cost-effective than certain other life insurance policies.
Then there are tax benefits in the form of deductions on premium payments under Section 80C and also tax exemptions on the death benefit payout under Section 10(10D), provided the policy meets specified conditions. You can choose as high a coverage amount as you can afford, while some insurers also allow you to increase it flexibly with increasing responsibilities and income. Premium payment frequencies can be customised as per your preferences, while you can also tailor the sum assured payout as per your needs (subject to the policy’s terms and insurer’s options). Some plans allow a lump sum payout, monthly disbursals, or a mix of both. That’s not all; you can also add riders to your policy to help the family financially in case of scenarios like accidental disabilities or death and even the diagnosis of specified critical illnesses. However, terminal illness benefits are often a standard inclusion in many term plans.
Buy a Term Insurance Plan Right Away
As you can see, choosing a term insurance plan is a strategic move for your family’s financial security. No matter what happens to you, they can always be financially independent and meet their aspirations minus any compromises. At the same time, riders also help you prepare for various unforeseen situations in life, while the tax benefits and affordable premiums sweeten the package further. Kotak e-Term Plan is one such option that offers extensive coverage, multiple payout options, and a seamless online purchase process, making it an ideal choice for securing your family’s future.
