Looking for the perfect gift? 4 ways term plan Insurance can secure your loved ones

Insurance and investments today are non-negotiable aspects of an individual’s life. To be able to afford to indulge in wealth growth instruments such as investment plans and have full financial coverage through insurance plans are privileges of their own. Many people compromise on them in order to have present financial stability, which may lead to uncertainty in the future.

As the festive season soon approaches, gift-giving will become a practice this time of the year as people think of ways to brighten the lives of their loved one through memorable tokens of appreciation – one such gift you can opt for is a term plan insurance for your loved ones.

In a post-pandemic world like today, the practice of festivities and exchanging gifts might have changed by significant degrees. But the way to work around these circumstances while also keeping the spirit of gifts alive can be through investing in a loved one’s future. A term plan insurance can be a useful gift, as it is an aspect of life that has become a necessity. The pandemic has made it even more evident that preparing for one’s future is vital step towards financial security through the most difficult times.

Understanding The Details Of Term Plan Insurance

Term insurance plan is made to cover the needs of the insured and their dependents through an assured benefit sum in the event of the policyholder’s demise. A term plan in India is one that successfully combines an affordable means of securing one’s future where premiums are low and where one can customise their coverage and payout methods as per their convenience.

To gift term plan insurance to a loved one can be a novel way to support those dependent on you, or simply help them prepare for the future. For example, plans that can secure a child’s education, a parent’s retirement plans, or secure a family’s financial future. Let us look at some of the reasons why investing in term plan insurance can be the best gift one can give:

  1. Low Premiums: There is a range of insurance plans that offer coverage and future benefits to policyholders of all kinds. It is a simple instrument which has premiums that can go as low as Rs 600 a month, and are accessible to people from all income brackets.

    Image Courtesy: Shutterstock
  2. Build Finances: To be able to build a corpus and have a strong investment portfolio, one needs to be secure about things such as their life insurance expenses. The reason for that, is that in the due course of earning their capital in high-return schemes, one may experience financial losses in the market; hence when a person is insured under a term insurance plan their losses will not affect their coverage or tenure.
    While investing in market-linked schemes and money instruments, one will not have to compromise on their life insurance requirements as they are increasingly affordable and customisable as per the customer’s needs.
  1. Tax Benefits: Since lawmakers understand the universality of needing to secure one’s future in the face of unforeseen emergencies; the premiums paid for a term insurance plan and the payout sum thus received from the same at the time of maturity is exempted from taxation under Section 80C and 10(10D) of the Income Tax Act, 1961.
  2. Long-term Goals: In the event that a person meets an unfortunate accident or dies before securing an adequate financial corpus to achieve long-term goals, a term insurance policy and its monetary benefits can be used to fulfil goals and expenses. It helps the beneficiaries in the face of financial distress, while keeping them from having to sacrifice on their long-term goals and investments.

Now that the fundamentals of term plan insurance is established, let us read through the features that are to be expected in the best term plan in India in detail:

  1. Policy Tenure: it is the tenure of coverage determined and decided upon by the policyholder after consultation with the insurance provider. The duration for term plan insurance in India may range somewhere between 25-30 years. The plan reaches maturity once the tenure is completed.
  2. Death Benefit Sum Assured: It is the promised payout amount promised to the beneficiary of the policy in the event of the insured person’s passing. This amount is usually a financial resource for the beneficiary to maintain their financial obligations after a disturbance in the income patterns.
  3. Policyholder: The person who signs the insurance documents and maintains the recurrent premium payments and any additional policy costs is the policyholder.
  4. Insured: The individual whose life is insured under the term plan is called the insured. It is in the event of this person that the insurance provider is liable to process the assured payout amount to their dependent beneficiaries.
  5. Beneficiary/Nominee: The individual who is designated as the person to receive the assured sum payout in the event of the insured person’s passing is called the beneficiary or nominee. These are usually spouses, children or other family members who may be financially dependent on the insured.

Max Life Insurance and their options for term plan insurance can be explored further by reaching out to their financial advisors. If you’re someone who thrives on supporting people on their insurance journey, you can reach out to Max Life Insurance and understand how to become an agent.

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