Last Updated on January 2, 2020
Life can be unpredictable. It is literally impossible for anyone to predict what the future holds for them. That is why it is crucial to make sure that you are appropriately prepared for any curveball that life might throw at you.
One of the first concerns that plague people is that how their near and dear ones would fare in their absence. Their financial security is one of the things that is paramount to ensure their well being.
But what can you do to ensure that your family’s future is protected in your absence?
Getting a term life insurance, while might not be able to fulfil your absence, but can secure your family’s finances to quite an extent.
What is a term life insurance?
Term insurance is akin to life insurance and provides financial protection to the policyholder’s family on the unfortunate event of their untimely passing during the policy period. With the best term insurance plans you can ensure that your family’s future is secure in your absence.
Term insurances are more economical than life insurances because they provide maximum coverage at low premium rates. With the best term insurance plans you can secure your family’s future financial obligations like your child’s higher education expenses.
But before we get to discuss which term insurance plans are the best for you to avail, let us take a look at some of the important factors related to it.
- The policies of this insurance come with a fixed rate of premium for a particular period of time.
- When the policy period expires, your premium rate does not remain unchanged for the fresh policy you opt for.
- Conventionally, there are no survival benefits of the policy. However, with increased demand, some of the newer term insurance plans also come with survival benefits.
- On the event of the death of the policyholder, the nominated person will claim the benefits from the policy.
- The person benefitting from the policy can either opt to get a lump sum payment from the insurance or get the payouts in instalments.
What are some of the pros of getting term insurance?
The best term insurance plans offer huge advantages to the policyholders. The minimum age to get a term insurance is 18 years while the maximum age is 60 years. So if you get a term insurance plan before your retirement, you will surely get numerous benefits from it.
The premium amount for term insurance is much lesser than that of other insurance plans. For instance, if you opt for a term insurance in your mid-thirties, you can get coverage of up to Rs. 1 crore with the monthly premium of a minuscule Rs. 500.
Policyholders can avail several tax benefits for term insurance under Section 80C of the Income Tax Act of 1961. You can in fact avail dual taxation benefits. The first benefit can be availed when you are paying the premium. The second benefit can be availed by your family when they get the lump sum payment and get tax rebates.
Cover for critical illnesses:
With the best term insurance plans you can avail cover for critical illnesses as a form of additional protection. Thus term insurance apart from protecting your family’s future also provides protection against various critical illnesses.
With a regular additional premium payment you can access a lump sum amount if you are attacked by sudden critical diseases like cancer, kidney failure etc. Likewise, there are times when you can sell a life insurance policy to a 3rd party for immediate funds while you are still alive.
While not always an ideal situation, it can help you avoid costly medical debt that could accrue interest and fall into collections before your loved ones inherit the policy.
Disability coverage rider:
With this advantage you do not need to keep up with the premium payments if you are struck by permanent disability. Your term insurance will remain intact with the insurance company taking responsibility for your premium payments.
Few Max term life insurance policies that can benefit you before you reach your retirement age:
There are several excellent policies you can avail under the term insurance plans from Max term insurance policies. There is a diverse range of plans offered by this company under term insurance, each of them offering a plethora of benefits to the policyholder.
Some of the plans include:
Max Life Term Plan Basic Life Cover:
One of the best term life insurance plans, this Max life term plan is extremely convenient for you to avail before your retirement. This plan promises to pay the sum assured as the death benefit, if death occurs during the tenure of the policy.
The policy comes with yearly premium payment and the minimum and maximum sum assured is Rs. 25 lakhs and Rs. 100 crores respectively.
You can avail this policy until you have reached your retirement age at 60 years, with the policy maturing at 70 years. Also, if you opt for a high amount of sum assured, you can avail discounts in your premium amount.
Max Life online term plan cover+ monthly income:
It is an online Max Life Term plan that offers infinite benefits to the policyholder. In this policy, a sum of 0.4% of the total sum assured is paid to the nominee every month after the death of the policyholder.
In this policy, the minimum amount of sum assured is Rs. 25 lakhs and maximum amount is Rs. 100 crores. Policyholders have to pay a yearly premium amount to avail the benefits of this policy.
Max Life Super Term Plan:
This Max Life term plan has a dual death benefit. With this plan, the sum assured of the policy increases at a rate of 5% of the policy tenure.
After the death of the policyholder, the nominee can choose to avail 100% of the sum assured at once, or choose to get a lump sum payment of 50% of the sum assured and the rest as monthly instalments. With this policy, the maximum age you can avail the policy is at 65 years. Also, the minimum amount of premium is Rs. 5000.
Max Life Premium Return Protection Plan:
With this Max life term plan, the nominee gets the entire sum assured with the policy after the death of the policyholder.
Additionally, on the event of accidental death of the policyholder, the nominee is paid an additional 50% of the sum assured with the total amounting to 150% of the sum assured. However, the maximum age at which you can avail the policy is at 55 years, making it a great plan before your retirement.
Thus, opting for these Max life term plans before your retirement age can enable you to protect your family’s future quite effectively.