Why Term Insurance is a Must-Have in Your Financial Portfolio?
Term insurance is an indispensable part of the kit to manage your money wisely in India, offering more of a safety net capturing you and your family from falling into financial trauma if something unexpected were to occur. In this article, we will dwell on why term insurance should be one of the must-have financial products in your financial portfolio.
First, term assurance is simple; it’s a plan whereby you are supposed to pay a small amount regularly, and in case death takes place during the period of the plan, your family is entitled to a bigger sum of money. This will help your family in dealing with living costs and debts, assisting them with needs to come, like educational or marriage-related costs.
The most important reason to have term insurance is the financial security it gives to your family. You are the head of your family, who earns money for the household, so just give it a thought: what if you are suddenly gone? Term insurance makes sure that your family isn’t short on money at that time.
The other point is the affordable cost; term insurance is unbeatable in that matter. You get a high amount for your coverage for a small price in comparison. So be wise, especially those who are tight with their budget. This is one place you shouldn’t compromise.
The term insurance is also highly flexible. You can choose the extent of coverage that you would like, the period for which you would like it, and even how frequently you would like to make the payments. Under certain options, you can add riders to the term insurance. They provide various benefits in cases of severe illness or accidents.
Also, term insurance helps you in planning your money. It serves as a guarantee that you and your family stay standing in a financially strong position, whatever life brings your way. The plan also helps in controlling risks. The money from the claimed amount can also fulfil pending family goals rather than drain out your finances.
Another advantage attached to term insurance is the tax benefit. Many a time in India, the amount paid toward term insurance can be deducted from your taxable income, thereby helping a person to save money from being taxed.
In a few words, term insurance is a must-have for those who want to protect their family in India. Its affordability, simplicity, flexibility, and tax-saving features are the benefits it adds to your financial portfolio. In this way, term insurance is one of the responsible steps towards securing your loved ones’ future in your absence. But remember that term insurance is not just about availing protection from contingencies. It rather involves protecting a good amount of investment that you make toward your family.
