Is it a Good Choice to Buy Term Insurance in 2021?

Should You Buy Term Insurance in 2021? - EastMojo

As important as it is to earn more money, it is equally important to have an investment plan in place. This means knowing where you are going to put your hard-earned money. If you are an individual who is an earning person, then the safety of the family is of paramount importance and one of the most crucial reasons to make an investment.

For this, it is very important to include a term insurance policy in your portfolio. It can offer swift, simple, and strong protection to your family against a long list of bad situations. The option of getting an online term plan is also available. However, many people may have questions about the right time to buy term insurance.  

What is term plan

A term insurance policy is a type of life insurance product that provides a death benefit in case the insured person dies. This death benefit is in the form of a payout of a large sum of money towards the policyholder’s family. Term insurance is a type of insurance policy that provides a high sum assured. It is also usually one of the most accessible and cost-effective ways to protect your family and invest your money in the right place. A term insurance policy can help protect a family’s financial future in case something unexpected happens. It will also provide the family with the financial assistance they need to cope with their financial issues. A term insurance policy is a great choice regardless of the year you are planning to buy it in. It provides peace of mind and can safeguard you from unforeseen expenses. In case you are not able to buy a policy for a specific year, then you can always get a term plan online.

It is said that the earlier you buy term insurance, the better it is. This statement has to do with the age that you buy term insurance at. It is always recommended to buy the plan as soon as you can because you end having to pay lesser premium for it. If you want to avoid the hassles of traditionally buying term insurance, you can buy it online. Buying term plans online also means you could avail discounts and special deals.

Advantages of buying term insurance 

Here are a few advantages of buying term insurance that you should know about:

  • Easy to understand

Term insurance plans are very simple to understand. As a result, many individuals choose them as their preferred option. As mentioned above, term life insurance is a type of insurance that provides a sum assured to the beneficiaries in case the insured dies. It is of utmost importance that the policyholder pays the premium on time. That is almost all there is to understand about the working of the plan. If you pay your premium on time, you get to have the coverage of your choice for as long as you choose to have it. 

  • Higher sum assured

One of the main advantages of having term plans is that they are cheaper than other policies. It provides a major cost benefit to the policyholder. Along with having a low premium, the plan also has high sum assured. This ultimately means that you pay less money to have more coverage than other types of life insurance. You can always use a term insurance calculator to know the amount of premium you need to pay.

  • Tax benefits

Term insurance policies are designed to provide long-term financial security to families. However, they can also help minimise taxes. This means you get to save some money and invest it in other avenues. Some of the key benefits include tax deductions based on your premium each financial year due to Section 80C and tax exemptions on the payout of the policy as per Section 10 (10D).

A term life insurance policy is an investment that provides you with the peace of mind that comes with a secure future. Hence, it is important that you thoroughly research the available plans online. Doing so will help you save money and avoid making a mistake.