Mumbai: Life events are difficult to predict. Uncertainties may develop at any time, from abrupt health difficulties to unforeseen financial commitments. It is critical to have adequate financial safety for your loved ones’ future.
A term insurance plan, particularly a ₹2 crore one, might be a wise investment. It provides extensive coverage at a low price. Here’s why this may be the option for you.
1. High coverage for financial security
A ₹2 crore term insurance plan offers substantial financial protection. This means that in the event of your untimely demise, your loved ones receive a lump sum of ₹2 crore, which can cover both immediate and long-term financial needs. Examples of immediate expenses are funeral expenses or outstanding bills like home loans car loans or credit cards.
In the long run, this coverage can help your family maintain their quality of living; pay for children’s education, further studies, or even for weddings and such occasions. This also means that your spouse and dependents can lead comfortable lives without worrying about how they will manage during lean moments.
2. Affordable premiums
Term insurance is well-known for its cost-effectiveness compared to other types of life insurance, such as whole-life or endowment plans. It means that with ₹2 crore term insurance policy, policyholders can get much more coverage than they have to pay for the policy.
This affordability is especially important to those people who seek to maintain the balance of their fiscal budgets in their households. Term insurance premiums also do not change based on market forces like the investment-linked policies and hence there is no unpredictability of expenses required in the policy period.
3. Peace of mind for your family
When you purchase ₹2 crore term insurance policy you are actually making a very wise investment for your family’s financial future. The fact that there is a cushion to call upon during lean moments gives one an assurance.
These things contribute to enabling one’s family to work on recovering their emotional state without the pressure of penury. Whether it’s for daily living or a future goal, your policy can offer the stability they use to overcome life after loss.
4. Best option for young professionals
A ₹2 crore term insurance plan is one of the smartest financial products young professionals could avail for themselves. At a tender age, you have better health than their middle-aged counterparts and the insurance companies put up cheaper rates. When you buy a ₹2 crore term insurance policy, you freeze these low premiums for the policy’s duration.
This means you can have wide-ranging coverage at an affordable price to provide for your family as your career advances and your duties increase. It also helps you to gain early coverage in case there are future health complications that may lead to difficulties in getting insured.
5. Ideal for supporting dependents
If you have dependents who rely on your income, a ₹2 crore term insurance policy ensures their financial security. This may be the parents who are grandparents or elderly and might require support or the young children who will need money for school, marriage and other important ends.
Instead, your dependents will not need to change their status and start living a poor life if ever you are no longer around. Such an amount of cash can greatly assist them to sustain their living style and thus meet their planned objectives if any.
6. Tax benefits
₹ 2 crore pure term insurance plan is not only protection planning but also has tax saving plans. The premium payable for the term insurance plan is tax-free under section 80C of the Income Tax Act up to an amount of ₹ 1.5 lakh for each financial year.
Also, the amount that your family receives as death benefits is tax-free according to Section 10(10D). This can make your policy all the more financially attractive as it could translate into serious tax benefits.
7. Financial safety net for your business
For business owners, term insurance can serve as a strategic financial safeguard. If you are the sole breadwinner of the family or have availed of business loans, a ₹2 crore term insurance plan can provide for these responsibilities in case of your unfortunate untimely demise.
This is important to keep your business running because any change in the management or ownership of a business can lead to a financial crisis that may shut down the business. It could give the required capital to clear existing liabilities, ensure the firm’s survival or relieve your co-owners and/or family members of the burden of running the business in a difficult period.
8. Customisable riders for added protection
In fact, many of the term insurance plans have been designed with the provision of riders that you can attach to it. Such Ancillary options of the policy may comprise the critical illness rider which pays out the customer if he is diagnosed with cancer, heart attack or stroke.
To be more precise, accidental death benefit riders are perfect for paying an extra amount in case of an accidental death. There are also income benefit riders who provide fixed monthly income to your family in case you are no more so that they are financially supported. Such personalised policies guarantee that your insurance policy precisely fits certain needs and gives you more confidence.
9. No savings or investment pressure
Term insurance policies are designed purely for protection, without an investment or savings component. This makes it easy for you to concentrate on ensuring that your family’s future is well taken care of without having to bother yourself whether the returns or the investment will be good or otherwise.
Term insurance is different from endowment or unit-linked insurance plans, which have a cash value, and all your premiums go towards your coverage. It is simple and straightforward, without the need to compare investment options, making it easy to manage.
Ending note
A ₹2 crore term insurance plan can help secure your family’s future without complicating your financial strategy. It provides the necessary safety net for everyone with its extensive coverage, moderate rates, and tax benefits.
Whether you are a young professional, a mom, or a company owner, this plan may be adapted to your specific circumstances. It provides peace of mind by assuring that in the event of an unforeseen incident, your loved ones are financially secure. Investing in the today will provide everlasting security for your family tomorrow.
