Why COVID-19 Is a Wake-up Call for Buying Term Insurance?
The coronavirus (COVID-19) pandemic has spread throughout the world, and it does not seem to end soon. COVID-19 has taken numerous lives and has created financial havoc. Besides this, millions of people have lost their jobs and have no source of income. The fretting thing about this pandemic is that no one knows when it will end. Moreover, no person is safe from this virus, which, therefore, increases the need for a life insurance cover.
Investing in life insurance is the need of the hour, as it will protect the financial goals and requirements of your loved ones if anything untoward happens to you. If you are searching for the purest and simplest form of life insurance cover, it is advisable to invest in a term insurance plan.
If you do not have a clear idea about what is term insurance, then read on. Term insurance provides life coverage for a specific tenure. In case of any unfortunate incident during the period of the policy, your nominee will receive the death benefit from the insurer. One of the significant advantages of having a term insurance policy is that it provides high coverage at an affordable premium.
India has a population of more than 135 crores, out of which approximately 426 million are millennials. As the younger generation is tech-savvy, they prefer buying term insurance plans online, rather than purchasing from insurance agents. Buying a term plan online is an easy process, as you can do it from the comfort of your home or office.
Due to COVID-19, unemployment has increased significantly. Thus, people have to use their savings to meet their day-to-day expenses. They are also worried about the consequences if something tragic happens. So, it is essential to plan your family’s financial future if you are not there to take care of them. If you do not want your dear ones to face financial difficulties and ensure that they lead a peaceful life when you are no longer around, purchase a term insurance plan.
There are many term insurance plans in India. Therefore, selecting the one that provides high coverage at the best premiums should be your priority.
COVID-19 is a wake-up call for buying term insurance, and here are a few reasons why you should purchase it.
- Provides large cover at a nominal premium
You never know what the future holds for you; therefore, you should buy a term insurance plan as early as possible. A benefit of buying such a policy at a young age is that the premiums are considerably low. The premium increases with growing age. Thus, it is wise to buy a term plan at an early phase of life, as the insurer will offer a high sum assured at an economical cover. Also, remember that the sum assured should be around 20 times your annual income.
- Safeguards the financial future of your family
If you are the sole breadwinner of your family, you should buy term insurance without any delay. You may have liabilities like home loan and car loan, among others. Just think about how will your family members pay these debts in your absence. The death benefit received by your family under a term plan can help them to clear all the dues.
- Offers tax benefits
Another plus point of buying term insurance plans in India is that you can reap tax benefits. Under Section 80C of the Income Tax Act 1961, the premium paid for a term plan is eligible for a tax exemption. You can claim up to INR 1.5 lakh per annum as a deduction. Moreover, the death benefit is tax-free as per Section 10 (10D) of the Act.
The thought of imagining your family in financial hardships can be disturbing. As precaution is always better than cure, you should buy term life insurance at the earliest and heave a sigh of relief. Doing this will ensure your family’s financial protection.