Best Term Insurance Plan for Family

The toughest time that a family can face is the death of a family member. It can be devastating and extremely hard to get through. The only thing which can make it worse is if the person happens to be the sole earning member of the family. In such cases, it can be financially challenging as well. While it is not possible to get the loved ones back, there is a way in which you can ensure that your family does not have to worry about their finances.

Term Plan For Family

A term insurance plan is the most vanilla form of a life insurance plan that you can buy. The plan aims at offering life cover for the policyholder and pays the sum assured to the nominees in the unfortunate event of the death of the policyholder. And the plan does so by providing life cover at affordable premiums. Buying a term plan for the family would ensure that your loved ones do not face any financial hardships in your absence.

Why Opt For A Term Plan

Here are some of the more prominent reasons, why the term plan for the family should be on your priority list.

Affordable

Term insurance plans are much more affordable when compared with traditional life insurance plans. Insurers also give the option to pay the premium in easy instalments as per your convenience.

Tax Benefits

The premiums that you pay towards the policy are tax-deductible under Section 80C. Should the unexpected happen, the nominees will receive the sum assured which is non-taxable under Section 10(10D).

Health Protection

Some insurers offer critical illness protection along with a term plan for the family. On the diagnosis of any critical illness, the insurer will pay a certain per cent of the sum assured for the treatment.

Conversion

Some insurers offer the option to convert your term insurance plans into something a bit more traditional.

High Coverage

Term insurance plans usually offer high life cover as compared to other life insurance plans. Since the plans do not have any savings or investment components, it enables insurers to offer high life cover at affordable premiums

Types of Term Plan for Family

If you want to buy a term plan for the family, it would help the cause if you are aware of the different types of term insurance plans that are available.

Level Term Insurance Plans

A standard term insurance plan is the most basic and common term plan. A policyholder pays a certain premium to the insurer and in return receives life cover. The insurer pays out the sum assured in the event of death. However, if the policyholder survives the term of the policy, there are no maturity benefits.

Term Plans with Return of Premium

A return of premium policy is similar to a standard term plan. The only difference being, if the policyholder survives the policy term, the insurer will return the premiums paid till date.

Increasing Term Plans

Should you opt for the increasing term plan, you get the ability to increase the sum assured of your policy at regular intervals. You can increase the sum assured up to 1.5 to 2 times the initial sum assured.

Buying a term plan for the family is one of the smarter ways of securing the future of your loved ones. The plan is easy on your pocket while offering the highest amount of sum assured.