Family matters the most. It is of utmost importance to safeguard family members especially in the event of untimely loss of their only bread-earner. However, the unforeseen cannot be predicted hence, it is vital to protect the life of our loved ones in our absence by opting for life insurance. Term insurance plan is a life insurance product where financial coverage is provided to the beneficiary of the insured during untimely death of the policy holder within the policy term. Term insurance is by far the most affordable and popular plan among various other life insurance products.

Term plans and health insurance plans for family are financial policies targeted towards ensuring financial stability to the family of the insured,under circumstances of accidental death of the insured. However, term plans offer life coverage fora fixed period known as ‘policy term’ during which the insured member needs to pay premiums regularly to the insurance company to keep the policy ongoing. Under circumstances of sudden death of the insured member within the policy term, the beneficiary of the insured can claim death benefit from the insurance company. Here is what a prospective applicant should keep in mind before opting for a term plan.

The insured member needs to pay premium (quarterly, monthly or on annual basis depending on the plan opted for) to the insurance company throughout the policy period.

Any term insurance policy holder is eligible to receive tax benefits under the Income Tax Act 1961. Term insurance policy holders also enjoy tax deductions under Section 80C of Income Tax Act 1961 in addition to other deductions amounting to a maximum of Rs. 1.5 lakhs. There are provisions for joint life term plan which provides coverage for both husband and wife. Under situations of the husband’s death, the wife receives the sum assured and her policy coverage continues, but her future premiums are waived off.

Hence, it is always better for all individuals to opt for term plans and prepare for a safe and secure future ahead. Uncertainty is a part of life and the sudden demise of a family member is always unpredictable. Term plans form the biggest financial support to such families thus helping them lead a comfortable life.

So if you have not invested in such a term insurance plan, secure your future immediately and invest now. Provide for your family’s financial needs, when they need it most.

By Chakraborty

Dr Chakrabarty is the Chief Innovation Officer of IntuiComp TeraScience. Earlier she was Assistant Professor of Delhi University, a QS ranked university in India. Before that she has held research positions in IIT Mumbai, IIT Chennai and IISc Bangalore. She holds 2 patents and over 20 research publications in her name which are highly cited. Her area of research is in smart technologies, integrated devices and communications. She also has a penchant for blogging and is an editor of Business Fundas.