Most of us have the tendency of taking life for granted and assume that good things will stay with us forever. We are not talking about materialistic belongings but aspects related to your physical and mental well-being. The on-going COVID-19 pandemic is a huge wake-up call that conveys that health and life should not be taken for granted.

You always want that our family members can maintain the same lifestyle even when you are gone. The only way to fulfill this is by investing in a good term insurance plan. Before we get started with the primary benefits of a term insurance plan, we have a look at what exactly is term plan.

What is a term insurance plan?

Term plan or the term insurance plan is the most basic form of life insurance. Compared to other forms of life insurance, the offerings of term plans are relatively easy to understand. In a term insurance plan, you have to pay a fixed premium for a certain period.

The nominee would be paid the sum assured in case of your untimely demise. There are no survival benefits in case you survive till the tenure of the term plan. Investment in a term insurance plan should be the first step in building a rock-solid financial plan.

Listed below are the main benefits of a term insurance plan:

Financial Security

Life is uncertain and you need to have financial cover to keep your family protected from bad times. Investment in a term insurance plan from companies like ICICI Prudential Life Insurance ensures that your family is protected against financial obligations.

Investment in a good term insurance plan gives peace of mind, as you are aware that your family will be financially secure even in your absence. The sum assured can be used for fulfilling your child’s higher education, purchasing financial assets, and more.

You should look at factors such as claim settlement ratio, solvency ratio, availability of additional covers, etc. when choosing the best term insurance plan.

Ideal investment choice for all types of investors

Term insurance is suited for all types of investors. It is suited for working professionals, entrepreneurs, working women, single parents, and retired individuals. In a nutshell, it is the ideal investment option for someone who has dependents and wants to ensure that dependents do not bear your financial burden when you are gone.

Many single parents are now investing in term insurance plans since the child depends on you. The child would not be able to fulfill his/her dreams if you do not make financial provision for the future.

Term insurance plans are affordable as premiums are much lower when compared to premiums being paid for other forms of life insurance.

Additional coverage on the go

Investors can opt for rides (or add-ons) above the basic riders covered under the term plan. Though the additional coverage comes at an additional premium, it helps in customizing the term plan according to your requirements.

Term insurance plan from ICICI Prudential Life Insurance comes with common riders such as critical illness rider, accidental death rider, among others.

Tax Benefits

Like other forms of life insurance, the premium paid for a term insurance plan is eligible for tax deduction under Section 80(C) of the Income Tax Act, 1961. If you are a working professional and looking for a good investment option that requires minimal financial understanding, term insurance plan is the ideal investment option.

Term Cover offers a number of benefits and the time is right to invest in a good term insurance plan so that your dependents are financially protected even in your absence.