InvestorQ : Why term plan is important?
Mahil Khan made post

Why term plan is important?

Jignesh Gupta answered.
2 years ago

Term plans give you very high life covers for a low premium. It gives financial protection to your family, even after you are gone. If you survive the policy tenure, you will not be entitled to get any survival or maturity benefits.

Apart from the above primary reasons, here’s why the term plan is so important:

Low premium- In term plan premium increases with age. So its pretty simple to understand that younger you are, healthier you will be. Thus its advised to get a plan at earliest.

Financial security to your loved ones- In the course of life one can never foretell what the future holds. Thus term plan can be one the source that can help during uncertainties.

Bonus (tax saving opportunity)- No doubt that most of us will find this as one of the best reasons to get a term plan. Under 80C of Income Tax act, get a maximum limit of Rs.150,000. Your premium can be deducted from your taxable income.

That’s not it! Under Sec 10(10)d, get tax exemption on the benefits that your loved one will receive.

Closing thoughts: It is important to purchase a term plan at the earliest possible time. This will give you the benefit of paying a small premium amount and help to get prepared for life’s uncertainties. In case of an unfortunate death, It gives financial protection to your family.

You can use below link for reference:


Purvesh answered.
2 years ago

Term plan is also called as core insurance plan where the nominee gets the money only if the insured person dies during the term taken. If the term is over and the insured person live, then no amount is paid.

This is the best insurance policy for Human Life Value.