Best Term Insurance Plan for 25 Lakh

A lot of us plan our future meticulously, not leaving any loose spaces in between. Be it buying a house of your dream, a car that you had always aspired to buy or for children’s education, we leave no stone unturned. Irrespective of the immaculate planning, there might still be a kink in your armour.

Amidst all the planning we tend to forget the worst possible thing that can possibly take place, the death of the bread earner of the family. The death of the bread earner of the family brings a lot of agonies and financial instability in the house.

This is where a term insurance plan shine. A term plan is a rudimentary life insurance plan that offers life cover at lower premiums. In the unfortunate event of the death of a policyholder, the insurer will pay the sum assured to the nominees of the policy. Apart from offering considerably higher sum assured at premiums unheard of, term plans have a few other tricks up their sleeves. Term plans bring a lot of flexibility to the table, which is one of their biggest advantages.

Should You Buy Term Plan?

The following are some of the major benefits of buying a term insurance plan.

Affordability

Whether you are looking for a term plan of 25 Lakh or more, it will quite easily fit into your budget. The plan offers life cover only in the case of the death of the policyholder. And if they survive there are no other benefits. Thus, helping insurers keep the premiums down.

Tax Benefits

Premiums that you pay towards your term plan of 25 Lakh or more, are tax-deductible under Section 80C. And the proceeds of the plan are also non-taxable under Section 10(10D). Thus, term plans offer dual tax benefits.

Health Protection

Some insurers offer critical illness cover along with the term insurance plans. On the diagnosis of any of the listed critical illnesses, the insurer will pay a pre-defined percentage of the sum assured for diagnosis and treatment.

Ability to Convert

You have the ability to convert your term plan of 25 Lakh into normal life insurance products. However, this feature might be limited to certain insurers.

Cost-Effective

Unlike traditional life insurance products, a term insurance plan does not put your money into buying any savings or investment components. This ensures that you get the maximum life cover by paying the lowest possible premiums.

Flexibility

Depending on your needs, you can opt from a list of different term insurance plan types. To start with, the standard term insurance plan should suffice most of the requirements. You can also opt for increasing term insurance, where the sum insured increases at regular intervals. You can also opt for a return of premium term plan, where the insurer refunds all the premiums paid if you outlive the policy.

Riders

If the basic term plan of 25 Lakh does not meet your requirements, you can always enhance the policy capabilities with the help of riders. Riders or add-ons are additional capabilities that come at a small premium but improve the coverage of your plan by a considerable margin.

Having term insurance in your financial portfolio can add a lot more value than you might imagine. It offers adequate financial protection for your loved ones without hampering your current finances. If you haven’t already purchased one, now is the time to go ahead and buy one.