Live care-free with a term plan cover

Written by: Kamalakar Sai

Sometimes the simplest investments turn out to be the ones that give you the most satisfaction. A term plan, though the most basic form of insurance is one of the most reassuring investments for your family's future.

It is said that sometimes we do not value what we have until it is gone. That wisdom, by and large, sums up a term plan. For those who do not value the concept, investing say INR 5,900* a year, for a long period of time, with no return, could seem like a valueless proposition. However, in the event of the loss of a breadwinner, your family being provided with INR 1 Crore - in exchange for the mere amount of INR 5,900 paid every year (INR 16.16 a day)* - is actually the self-explained benefit of purchasing a term plan.

The peace of mind that it gives, just to know that your loved ones will be well taken care of, if you are not around to take care of them yourself, makes the whole proposition worthwhile.

Other Benefits of IndiaFirst Anytime Plan

Minimum Annual Premiums: Term plans are the cheapest form of insurance when compared to the potential benefits. Put simply, it offers the highest level of cover per rupee of premium that you pay.

Fixed Premiums: The reasonable premium of a term plan helps you start investing in a term plan at an early stage of life (when your income may not be very high). And what's more, this premium amount is fixed and does not change or go up with changes in your age/ health.

Optional riders: The benefit of a basic term plan is triggered only in the event of the death of the insured under all circumstances stated in the policy. Accidents and some other events are usually not covered by such plans.

However, you can add optional riders, such as death in an accident or critical illnesses, to extend the benefit of your plan by purchasing riders at a marginal cost.

Tax benefits under Section 80 C and Section 10(10D) of the Income Tax Act, 1961: You receive tax benefits on the premium you pay. Further, your family and loved ones receive tax breaks for the benefits they receive from your plan.

End Note
Set your heart and mind free with the knowledge that the future of your loved ones are secure, as you are covered by term insurance. Weighing the ‘cost' of purchasing a term insurance against the potential ‘benefits' it offers, is an exercise that will make you value it while you have it, instead of allowing your family to miss it if it were not taken!

Remember! Always inform your loved one/ nominee about the policy

*Note: Premium of INR 5,900 for a 25 year old non-smoker male for a 20 year term plan.

Disclaimer: Insurance is the subject matter of the solicitation. Tax benefits are as per current tax laws and are subject to change from time to time IndiaFirst Anytime Plan-UIN- 143N009V02. Please read the sales brochure carefully before buying the plan. Registered and Corporate Office Address: IndiaFirst Life Insurance Company Ltd., 301, ‘B' Wing, The Qube, Infinity Park, Dindoshi-Filmcity Road, Malad (E), Mumbai - 400097. Website: IRDA Registration No: 143. Toll Free No. 1800 209 8700. SMS to 5667735, SMS charges apply.

Story first published: Wednesday, February 26, 2014, 10:37 [IST]
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