Insurance is one of the ways through which you protect your financial interests. By paying a premium on the policies that you buy, you may get coverage against one or more things like health, medical expenses, life coverage, accidents, or even physical disability. The insurance policies ensure that you and your family are covered against the above mentioned risks. This allows you to focus on other things that can bring wealth and help you reach your financial goals.
One of the best ways to secure personal and financial goals while ensuring your family’s financial interests are taken care of is to calculate term insurance coverage relevant to you and get yourself a term insurance plan.
Here is how you can get yourself term insurance:
In order to get term insurance, you will need to calculate term insurance needs. To calculate term insurance coverage, you will need to determine your current financial needs, the expenses that you make are frequent, the savings you need and the financial security you would want to protect your beneficiaries with.
Once you calculate term insurance needs, you can choose from the various policies available through different insurance service providers. The idea behind the thought is to calculate term insurance needs first to have a clear baseline of the coverage amount, tenure, and financial and personal needs. One can be swayed by the various policies available and end up with a policy unsuitable for their pockets or needs.
Here are ways how term insurance can secure your personal and financial goals:
- Affordable premiums: When you are young, your responsibilities are low. However, your earnings may be low. For an insurance company, your risk is low. Hence, the premium that you calculate for term insurance is affordable. As low as Rs. 18000 pa.
- Payout for your family: When you meet with an unfortunate accident, the payout is released for your term insurance. This is because term insurance is designed to protect your family’s interests in your absence.
- Riders: Riders are essentially add-ons to your policy. To have you covered for critical illnesses, accidents, or even disability, you need to add riders to your policy. The riders affect the premium that you pay. Hence, remember this when calculating term insurance needs and premiums.
- Tax Benefits: Section 80C under the Income Tax Act of India 1961 provides a tax benefit in the form of a deduction to help you save money on the premiums you are paying. You can also claim a tax benefit under Section 80D if you have a critical illness rider. Even the sum assured received by your beneficiaries under Section 10(10D) allows you to have some exemption based on the provisions.
Due to one or more of these reasons, term insurance helps you build on your financial goals and help you protect your family’s interests.