How Can Term Life Insurance Keep You Out Of Trouble?


We all know the complexities of life. When you fall sick, you go the doctor and when you are hungry you eat food. So the fact here is that, we all know when to do what. I don’t have to get into the philosophy of life to know the human needs and wants, it’s obvious and natural tendency to act as per one’s need. Life Insurance ain’t no different. There is something which has gained immense popularity in Life Insurance policies. Like for example, if you are a movie buff like me you can call it as the “Shahrukh Khan” in the world of Life Insurance. Where, he rightly delivers “Hamari filmo ki tarah, hamari zindagi mein bhi end tak sab kuch thik hi ho jaata hai … happy’s ending”. And that undisputed King in Life Insurance is the “Term Life Insurance”.

In simple terms, a Term Life Insurance provides potential death benefit to the beneficiary / nominee of the policy in case of demise of the policy holder. India’s top financial advisors have also considered Term Life Insurance plan as an ideal plan when it comes to Life Insurance.

Let us find how a Term Life Insurance  can keep you out of trouble?

  • It will take care of your loved ones in your absence

It is not easier for any family to recover the loss of their loved one and especially one who is the only wage earner of the family. However one thing you can be glad about is that, the family will be at ease, all their finance related issues will be taken care off by the term life insurance policy.

  • Daily expense will not be a liability anymore

It is not easy for any family to survive or give up their existing life style if something happens to the breadwinner of the family. With Term Life Insurance, one can expect that all the basic requirements like food, clothing shelter etc. will be taken care through a life insurance policy.

  • There will be peace of mind

Of course no one can replace the person who is gone. Through a Term Life Insurance policy, the family will not have to face a double trauma, of losing their beloved plus losing out on their lifestyle, home, school, education of their loved ones.

  • Will provide tax benefit when you are alive

Most of us don’t know how to save tax. We keep finding ways to save tax, however the tax benefit option is the key benefit of buying Term Life Insurance. You get a tax benefit as per the Income Tax Act.

Important Points to Be Noted For Term Life Insurance

Buying a Term Life Insurance is easy, however there are few basic factors on which one can buy a Term Life Insurance plan.

  • Age

This is the most important factor while buying a life insurance. It is recommended to buy a policy young, since the chance of us getting prone to any diseases are less. Which means less risk means low premium. Always remember earlier the better.

  • Gender

Another important factor that influences the premium of a Term Life Insurance plan is your gender. It is said that women can  live up to 5 years more as compared to men. Which is why, a female insured is charged a lower premium than a male insured.

  • Medical History

This also plays a vital role, as your previous and current medical condition will determine your life condition and in turn your policy premium as well.

  • Smoking

In case you smoke or chew tobacco, there are higher chances of you getting lungs related diseases. Hence premium in this case will always be slightly higher compared to a non-smoker.

  • Overall life style, education, job etc.

Your education, salary etc. does impact your premium of a Term Life Insurance policy. In case  your work revolves around mining then it is for sure that your job involves a lot of risk. The Life Insurance Company might charge you a little higher premium in that case.

Benefits of Term Life Insurance

  • Death benefit

The main purpose of a life insurance policy is to provide death benefit to your  beneficiary / nominee of the policy in the form of sum assured once you leave this world.

  • Financial security

Another important benefit of a Term Life Insurance policy is that it provides, a sense of financial security on the policy holder’s death.

  • Exempted from Tax

The premium you pay against your term life insurance has a maximum tax benefit up to Rs.1.5 lakh under the Section 80C of the Income Tax Act, 1961.

  • Low premium

Term Life Insurance policies offer a large cover at a lower premium , this is one of the USP’s of term insurance.

With Term life insurance your beloved ones not only get the death benefit, but also they can live their lives  peacefully.