- Friday, April 26, 2024
By: Admin Super
Gifting people you care about is a prevalent Indian custom. We believe in showering our blessings and care through treats or gifts. So why not gift something special to a loved one – a gift that helps secure their future in the best way possible?
As a family person, it is your responsibility to take care of your loved ones while making sure that you help them be financially self-sufficient. Thus, when it comes to financial gifts, you can leverage these instruments to transform the lives of your loved ones in the long run. In other words, you can help your family understand the value of financial management and provide a safety net for them, in case anything happens to you.
In this fast-paced world, you never know what awaits you next. As life is always at risk, it is necessary to start preparing for your future, financially. Thus, you can consider term insurance, which is a pure risk transfer tool. Investing in a term plan allows you to take care of your loved ones, in your absence and is a perfect gift for your family.
What Is A Term Plan?
A term insurance plan has become a necessity for every individual, and its importance cannot be stressed enough.
A term insurance plan is an insurance, which provides coverage for a specified time. During this period, called the plan term, if the person whose life is insured dies, the sum assured is paid. The sum assured is the amount of coverage that you choose at the time of purchase. The benefit under the plan is payable only if the person insured dies. If you outlive the stipulated term, the policy matures.
Thus, term insurance is a pure protection insurance plan which provides coverage against the risk of death. Any other risk, like surviving till maturity, is not undertaken and no benefits are payable in case of such risks which are not inclusive.
Why Term Plan?
A Term life insurance plan is the purest form of life insurance policy out there, and it’s crucial that you purchase it as soon as possible so you can reap the maximum benefits.
Here are some of the reasons why you need to gift your loved ones a term plan:
The death of a family member is a significant loss in all terms. If you are contributing to the household’s income, your absence can cause a substantial financial strain too on your family. Your dependents such as your parents, your spouse, or your children- will have to bear the brunt of paying off your home or education loans (if any), and even managing day-to-day expenses without your contribution along with the deep mental trauma.
You do not realize your worth until something unfortunate occurs. If you do not want to leave behind such a situation in your wake, take a term plan today.
Life becomes challenging if a breadwinner of the family is gone. It becomes hard to imagine if the family will be able to function the same and live the same lifestyle or will be able to cope-up with the financial debts with the sudden loss of income. However, with term insurance in hand, things sail smoothly even in your absence.
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Term insurance can get you a tax benefit of Rs 1.5 lakh maximum under Section 80C of the Income Tax Act, 1961.
Key features of a Term plan
When you look to buy a term policy online, you can consider term plans offered by reputable insurers such as Max Life Insurance, which provide comprehensive financial protection to your family along with long-term tax savings and other benefits. You can compare the term plans online and buy the most suitable policy for you and your family.
Buying a term policy online is the most cost-effective way. They provide low-premium, high-cover protection plans where the premium is used entirely, except for a small portion used to meet administrative costs, for risk coverage, i.e., to cover the mortality risk.
Overall, the best way to lighten your family’s financial burden and show your affection is to offer financial gifts or deploy strategies that can reduce their fiscal responsibility, optimize returns, and provide safety of capital.
