Term Insurance Benefits

2. Easy to Understand

While buying a life cover, you may find it difficult to understand the insurance-specific terms about various life insurance policies. One of the prime features of term insurance plans is that they are quite easy to understand.

As a pure life cover, a term insurance plan does not have an investment component in it. You pay the premiums, and the insurer covers your life for a fixed duration to offer the term insurance benefits.

3. Multiple Death Benefit Payout Options

You may be paying the EMIs of your new home, car, or a personal loan you have borrowed. In your absence, your financial liabilities may fall on your family members. It is where the various payout options of term insurance policy play a vital role.

Your dependents may get a lump sum amount in case of your unfortunate demise and this lumpsum will help them to manage the aforesaid financial liabilities.

Some term insurance policies also give you the option to receive a monthly income along with the lump sum amount as the death benefit. With this monthly income, your family may find it easier to manage the regular expenses.

4. Additional Riders to Strengthen the Policy

Term insurance plans come with riders that you can choose to enhance the basic term insurance benefits. You can add these riders to your term insurance plan by paying a nominal additional premium.

For example, the Max Life Waiver of Premium Plus Rider [UIN: 104B029V03] from Max Life Insurance provides you waiver of all future premiums in case of dismemberment and in case you are diagnosed with the any of the specified critical illness [1]. This means your life cover will continue even when you are not able to pay the premiums for your policy.

5. Income Tax Benefits

Term insurance plans also provide tax benefits. While the premium you pay for a term insurance plan is tax-deductible, the payouts also come with tax exemptions as per the existing tax laws.

Also Read: Term Insurance Tax Benefits

Term Insurance Benefits under Section 80C

UnderSection 80C of the Income Tax Act 1961, the premium you pay to buy a term insurance plan is exempt, up to a limit of Rs.1.5 Lakh in a year. You can get maximum term insurance tax benefits under this section by purchasing the plan for the maximum coverage offered to you based on your age and health.

Term Insurance Benefits Under Section 10(10D)

The death benefit of term insurance plans is fully exempt as per the provisions of Section 10(10D) of Income Tax Act 1961.

6. Critical Illness Coverage

You may suffer from critical illnesses during any phase of life and getting the necessary treatment can drain all your savings. Although the primary benefits of term insurance plans only offer life cover, you can choose to get critical illness coverage via opting for add-ons/ riders.

Max Life Insurance offers critical illness rider with its two variants of term insurance plans - Max Life Online Term Plan Plus (UIN: 104N092V04, Non-Linked Non-Participating Individual Pure Risk Premium Life Insurance Plan) and Max Life Smart Term Plan (UIN: 104N113V04, Non Linked Non Participating Individual Pure Risk Premium Life Insurance Plan). Under the Critical Illness cover, you will get a lump sum in case you are diagnosed with the critical illnesses covered under the policy.

With this cover, you can pay for the necessary treatment without consuming up your savings.

7. Accidental Death Benefit Coverage

Accidents can happen at any time and may lead to death or dismemberment. So, you can add an additional cover using Max Life Accidental Death and Dismemberment Rider (UIN: 104B027V03; Non-Linked Non-Participating Individual Pure Risk Premium Health Insurance Rider).

Max Life Accidental Death and Dismemberment Rider (UIN: 104B027V03; Non-Linked Non-Participating Individual Pure Risk Premium Health Insurance Rider) from Max Life Insurance safeguards the financial future of your family in case of accidental death or dismemberment. You can add this rider to your term insurance policy to provide additional term insurance benefits or cover in case of accident leading to death or dismemberment. [2] The sum assured is payable to the beneficiary in a lump sum as per the contract as the benefits of term insurance policy. You can add the Max Life Accidental Death and Dismemberment Rider at any point of time, provided that the remaining policy term of the base policy is at least 5 years.

To get the benefits of term insurance plan with accidental death rider, you can add this rider while buying the policy or post-purchase as well. Also, you must understand the coverage benefits of various riders before you include them in a term insurance plan.

8. Return of Premium Option