Benefits of Buying Term Insurance at Early age

A term insurance plan is a great way to ensure your dependents (members who depend on your income for their living expenses) will have financial protection in your absence. If you pass away while the policy is active, it will pay a fixed sum to them.

Your family can use this money to pay for their regular expenses such as grocery bills, electricity bills, as well as other expenses, like your child’s education or wedding expenses, etc.

If you have loans or liabilities like an education loan, home loan, business loan, etc., and pass away before settling them, the burden of repayment would fall on your family. Imagine the financial hardships they would have to go through in such a case.

Term insurance can help safeguard your family from such loans/ liabilities. They can use the term insurance payout they will receive (if you pass away) to repay the outstanding loans/liabilities and get the burden of repayment off their chest.

Term insurance is the simplest form of life insurance available in the market today. In exchange for the premiums you pay, it promises to pay a fixed sum of money to your family if you pass away during the policy period.

It is a pure risk cover and is easier to understand compared to other types of life insurance plans that combine risk cover with savings/investments. Further, it is also among the most affordable types of life insurance. The premiums are reasonable, allowing you to select a policy with sufficient coverage for your family.

For example, the ABSLI DigiShield Plan will cost approximately ₹1,289 monthly (with tax) for a 30-year-old non-smoker male, cover of ₹1 Crore up to the age of 60 years.

Note: The premium figures are taken in September 2022.

Term insurance plans also allow you to select riders. Riders are add-ons or optional benefits that offer added protection against certain risks like accidental disability, diagnosis of a serious illness, and so on. You can select riders by paying a nominal extra cost. And, you won’t have to undergo any additional paperwork or medical tests - beyond the ones you undergo for your base policy.

Tax benefits⁴ for term insurance can be availed for both the premiums you pay and the claim your nominee will receive - under various sections of the Income Tax Act of India, 1961.

• You can claim tax deductions on the term insurance premiums paid every year under Section 80C.
• The term insurance claim amount your nominee will receive will be exempt from taxation as per Section 10(10D)³.

The ABSLI Life Shield Term Insurance will financially secure your family and ensure they don’t give up on their dreams and goals in your absence. This plan includes a variety of features such as Increasing Cover, Decreasing Cover, Return of Premium option at policy maturity, Limited Pay, Joint Life Protection, and Riders such as Critical Illness Rider, Accidental Death Benefit Rider, etc.

The ABSLI DigiShield Plan Term Insurance will provide financial security to your loved ones in the event of your untimely demise. Several features are included in this plan. A few of them include Whole Life Coverage (covering up to 100 years of age), Sum Assured Reduction Option, Increasing Cover, Return of Premium Option, and Riders like Accelerated Critical Illness Rider, Accidental Death Benefit Rider, Accidental Disability Rider, etc.