Financial Protection: Should the insured pass away within the policy's term, term insurance pays a lump sum payment (also known as a death benefit) to the nominee. This sum can assist in making up for the lost income and giving the family financial stability so they can continue to meet their responsibilities and retain their way of life. The best part is that term insurance plans cost less than a lot of other life insurance products. You pay as little as 2 percent of your annual income for such a coverage, that’s 20 times more than your current annual income.

Affordability: When compared to other life insurance policy types, term insurance usually gives a high coverage level at a comparatively low cost. Because of its cost, a broad spectrum of people, especially young people, and those on a tight budget, may buy it. Term insurance premiums are deductible from income up to a specific amount under Section 80C of the Income Tax Act. It is also an effective tax-saving tool because the nominee's death benefit is often tax-free under Section 10(10D).

Financial Replacement: When a family's principal provider passes away, their dependents may suffer greatly from a lack of money. By helping to restore this lost income, term insurance helps make sure that the family's basic needs—such as a mortgage, schooling costs, and everyday expenses—are met. You may utilize term insurance to pay off existing debts, including personal, auto, and house loans. The family can utilize the death benefit in the case of the insured's passing to pay off these obligations, relieving them of some of the financial load.

Flexible Options: Depending on a policyholder's needs and financial objectives, term insurance policies frequently offer flexible options for determining the coverage level, policy duration, and frequency of premium payments. According to needs, riders or extra benefits can also be added to the coverage to improve it. A lump sum payment is made upon the diagnosis of any qualifying critical illness under some term insurance policies' critical illness coverage. If the policyholder lives out the policy term, certain term insurance policies include a return of premium option, in which case the premiums paid are reimbursed.

Remember that it's critical to select a term insurance plan that best suits your requirements both personally and financially. Before making a choice, make sure you have properly read the terms and conditions of the policy.