Term Insurance
Term Insurance cover provides the biggest financial security to you & your family. It provides many financial and health care benefits along with the death benefit to the nominee in case of death of the policyholder.
The sum insured and benefits depend on the policy and the premiums and tenure which you choose for the policy.
Term Insurance cover is mostly recommended until you turn 65, this is because 65 is considered as the standard age of retirement. It is assumed that by 65 you become free from all your responsibilities & liabilities, and would have saved enough in your earning span, with which you can survive the rest of your retired life when there will be a reduced income source for you.
Well, people prefer to work till they can and hence, the retirement age for most of the people are changing since the last decade. Moreover, the self-employed professionals and individuals work till their late seventies. Hence the coverage duration of 65 for the term insurance is not be relevant for everyone.
One who does not want to retire at 65?
Age is just a number! Many people have proved this by working in their late seventies as hard as the people in their 20s. If you are one among those who would like to work even after your retirement age, or in case of a self-employed professional looking to continue their practice/business till they can. As such 65 can never be a full stop for your career and growth. Hence it should not be the one to mark the end of your term insurance plan. The longer-term insurance plans are available to make it Earlier.
The main reason why people stop their term insurance after 65 is the regular source of income is reduced. But when you decide to work even after 65, you have a regular source of income and hence you can afford to continue your term insurance.
Maximum Benefits with Low-Cost Premiums
Term Insurance plans are the one which provides maximum benefits at the least cost. Some of the benefits provided by term insurance are:
- Secures your family
- It is cost-effective
- Have tax benefits under section 80C
- The simplicity of Term Plans
- Flexibility as per your convenience
- Death benefits are available.
- Benefits under Section 10 (10D)
The maturity amount, or the death benefit, are fully exempt under the provisions of 10 (10D) of the Income Tax Act 1961.
All these facilities are only available with term insurance, hence it is always a better option to continue your term insurance even after you turn 65.
Legacy Planning at Minimum Cost
Living a comfortable life post-retirement is everyone’s ultimate wish. But apart from this many of us want our families to have a comfortable life where they don’t have any financial stress.
This can only be achieved by leaving a financial legacy behind you. Long-term investment options are best for these things, but apart from this Term Insurance cover being appraised as a low-cost legacy planning investment option that practically assures a fixed corpus irrespective of the age of death.
Term insurance covers many death benefits, which comes to the nominee of the policyholder after the death of the policyholder. Moreover, the death benefits and returns are totally tax-free which makes more sense to invest in term insurance.
Increased Healthcare Expenses
Medical science has introduced many advanced technologies to protect us from several diseases, but the cost to treat critical illness or any other several diseases is too expensive, that most of the common man can’t afford it.
Long-term healthcare expenses are a major concern these days. The average annual healthcare expenses in a metro city for a senior citizen couple is in the range of ₹ 2-3 lakh.
Having term insurance makes you worry-free from all such situations. While choosing a term insurance plan make sure you opt for one which covers health care & critical illness and you are done.
The Increasing Average Age of Marriage
The present youth need to guarantee a monetarily free life before they settle down. The normal period of marriage has unmistakably expanded from the mid-20s to the late-20s.
Clearly, the age before which individuals become parents is pushed up by around 10 years. Presently, if you got hitched in the mid-30s, or you have turned into a parent in your late 30s or mid-40s, it is prescribed that you have a spread till you turn 70-75, to guarantee your family is protected from any significant costs or liabilities.
The decision of buying a term insurance plan totally depends on you. It is advised to take your decision by analysing all the factors such as- tenure, the sum insured, and the premium amount. You must check your requirements and affordability regarding the premiums as well while choosing one for you.
