The new age women empowerment highlights the fact that women have indeed come a long way. They are on the forefront in numerous fields. Women are not only becoming independent but also are contributing to their families’ finances. Hence, there is no doubt that they seek financial protection for themselves as well as their families. One of the most important instruments that help women achieve this objective is a term insurance cover.
A term insurance policy offers life cover for a certain period of time. In case of an untoward event of death during this period, the beneficiary receives the death benefit amount. In term insurance, the entire premium amount is allocated towards covering risk, and hence such a plan is known as a pure risk cover.
If you are a woman, who is looking to shield your loved ones from an unfortunate event of death, you may consider term insurance plans. Such insurance policies provide a plethora of benefits.
Following are four major reasons why you must invest in a term cover unfailingly.
1. Protection of household wealth
Women these days have multiple responsibilities such as catering to their children’s needs, looking after their husbands and taking care of their aging parents. In case of a premature death, your family may have to fend for themselves and may face financial constraints. Purchasing a term insurance policy ensures that they obtain the financial assistance required during difficult times. The death benefit amount acts as a safety net, thereby allowing your dependents to enjoy financial freedom even in your absence.
2. The benefit of regular income
One of the biggest advantages of term plans is the benefit of regular income. In case of a disability or any event according to the terms and conditions of your policy, the insurance provider is liable to provide regular payouts. This amount acts as an income replacement, thus enabling you to meet expenses without any worries.
3. Planning for your golden years
There are numerous providers, who offer maturity at the time of retirement. By investing in such a plan, you may save for your golden years and live a stress-free retired life. You may use the amount to meet expenses during that time such as medical bills or daily household costs. Such an income is a savior when your regular source of income ceases to exist.
4. Tax benefits
The Income Tax Act, 1961, provides tax benefits on premiums paid towards your term insurance policy. You may enjoy a maximum deduction of INR 1.5 lakh under Section 80C, thereby reducing your tax liability largely. Fulfilling your responsibility as a daughter, you may also cover your senior parents and enjoy a higher deduction.
The intent of a term insurance cover is to safeguard your loved ones from any kind of financial complexity in your absence. A term policy offers financial protection at a nominal cost. You may, therefore, invest in it unfailingly, and enjoy the benefits of such a plan.