It is no surprise that one needs to take care of their family no matter what. A regular human being does everything they can to ensure the safety and well-being of their family members. However, if there’s just one earning member in a family, it becomes imperative for this earning member to ensure a financial backup for the family in case of a mishap or sudden demise. This is where insurance policies come into the picture.
While there are a number of insurance policies to choose from, there’s always a good option sitting around the corner if you’re attentive enough. Certain policies not only give you a prolonged cover with better financial returns, but they also give you a reduced premium price for coverage. One such policy is better known as a term insurance policy.
Term insurance: the basics
Basically, term insurance is nothing but a policy that covers you and your family members from situations where personal health seems to be in jeopardy. As the name suggests, term insurance applies to a period of time for which the policy remains active. In simple words, a policy that is defined by the duration (number of years) it remains active for is better known as term insurance.
Now, term insurance works in a number of ways. It helps you take care of yourself and your family with tools that are easy to understand and implement. The best part of having term insurance is the fact that you have long-term coverage in your hands. It literally lasts for decades at times.
What benefits can I avail of from term insurance?
Term insurance, as mentioned above, has a number of benefits that help you out in the long run. With robust coverage, reliable tax deductions, etc., you get the best options at your disposal. Given below are the benefits associated with term insurance.
Tax deductions
With improved tax deductions, your premium gets a much-needed upgrade. It provides breathing room for tax benefits that come along with term insurance policies. However, you should note that tax deduction upon the premium can only happen when the premium itself is less than 10% of the assured sum. With tax deductions done the right way, you can ensure your safety, your spouse’s safety, and the safety of your children who are dependent on you.
Premium perks
A premium is an amount that you pay for the assured sum at a regular interval. It usually is way less than the assured sum for the most part. As a matter of fact, it usually lies under the 10% range of the assured sum. Now, premiums have their own set of perks. Women have to pay less for premiums, and so do people who have no smoking habits. The healthier you are, the cheaper your premium becomes. In fact, if you start out at a young age, the premium stays relatively cheaper than the ones that adults usually pay for.
Better tenure
The most important reason why you should look forward to having term insurance is its tenure. As mentioned above, term insurance policies can literally last for decades before going dry. It starts the moment you buy it and ends as per the time mentioned in the policy itself.
For example, if you purchase the policy at the age of 30 and have selected the duration of the policy to be 30 years, then the policy shall remain valid till you’re 60 years old. In some cases, you can literally have your entire life secured; all you have to do is find the right options and balance them out with the premium that works for you.
So, now you know
Now that you know the perks associated with a term insurance premium, you can now look for the perfect option that suits your needs. Every family has an earning member who, for the most part, is responsible for their family’s betterment and safety. A loss of such a member can be devastating and can leave the financial condition of the family in shambles.
Hence, it becomes imperative for you to plan ahead for such emergencies because you never know when a major problem begins to take shape. It’s best to exercise caution and make failsafe plans for your family’s secured future.