Here are a few reasons why term insurance is a wise investment choice -
Financial protection for your loved ones
Regardless of whether you’re salaried or self-employed, you may have certain financial obligations towards your family members. You need to make sure that your loved ones are financially afloat and are facing no problems when it comes to their own goals and daily needs. Term insurance acts as an unbreakable safety net that gives your nominee the claim payout to meet everyday expenses, outstanding loans, and more when you aren’t around.
Replaces your income
Losing a loved one is emotionally traumatic, and when you look at it from a practical perspective, the associated loss of income has a grave impact on the lives of loved ones. They may lose their financial stability and it may get difficult to cope up with bills, outstanding debts, and other immediate expenses, especially if there isn’t another earning member. Term insurance acts as a strong shield, replacing your income, to make sure your family members are financially safe, always.
Repayment of debts and liabilities
Whether salaried or self-employed, you may take loans to meet your needs. It may be a business loan, home loan, car loan, etc. Whatever the case may be, if you unfortunately pass away before your loan is repaid, your loved ones will have to bear the entire responsibility of settling it. Which can be extremely hard if there’s no other earning member. Term insurance is a great way to deal with this too. The claim amount that your loved ones will get in the unfortunate event of your demise can be used to pay off any outstanding debts with ease.
It’s easy on the pockets
Term insurance is one of the most affordable forms of life insurance, which makes it a good choice for salaried and self-employed individuals, especially those who adhere to a budget. The relatively lower premiums give you a high coverage in return, ensuring that your finances face no burden.
You can tailor it to your and your family’s needs
Term insurance plans give you lots of flexibility as well as customisation choices to make the plan truly yours. You can pick the policy duration, the coverage, any riders, how long you want to pay the premiums for, etc. This allows you to build a plan that fits your and your loved ones’ preferences and requirements.
Tax Benefits*
This benefit is a cherry on the top. Term insurance plans give out tax benefits* on both the premiums you pay and the death benefit your nominee receives.
- Under Section 80C of the Income Tax Act of 1961, the annual premiums you pay are eligible for tax deductions up to Rs 1.5 Lakhs.
- Under Section 10(10D)^ of the Income Tax Act of 1961, the death benefit your nominee gets, in the unfortunate event of your demise during the policy duration, is exempt from taxation.
Looking For Term Insurance? Here You Go!
ABSLI Salaried Term Plan [UIN: 109N141V01]
This comprehensive plan is specifically designed for salaried individuals. It offers you the flexibility to tailor the plan that meets your needs. It ensures that you create a strong financial shield for your loved ones, whether it’s for your child’s educational expenses, maintaining their lifestyle, or keeping up with their everyday needs in your absence.
Key Features
- 4 plan options for your unique needs and preferences.
- Life insurance coverage up to the age of 70.
- Various death benefit payout options, like lump-sum or monthly income.
- Extra protection with the built-in terminal illness benefit.