5 Term Insurance benefits that help you save your assets and money

Term Insurance benefits make for a long list. Term Insurance can offer your family members financial protection and an opportunity to fulfil their dreams in your absence. This insurance tool is also helpful if you want to save money by lowering your tax liability.

Term Insurance is a must-have tool; the sooner you get it, the better it can be. If you have not yet invested in it, here are some reasons to do it now.

Benefits of Term Insurance plan

·  Financial security
 

A Term Insurance plan offers a guaranteed payout in the unfortunate event of the policyholder's demise during the policy's term. The nominee can choose to receive a part of the money in a lump sum and the remaining as regular income. Irrespective of the method, Term Insurance benefits provide an unbeatable financial shield to grieving families and help them live well.

·  Asset protection
 

Term Insurance can be an excellent way to ensure asset security. In the untoward event of the policyholder's premature demise, the responsibility of settling debt, such as a home loan, car loan, etc., can fall on the family. This can be challenging, particularly in the absence of the chief earning member. However, you can use the money from a Term Insurance plan to repay debt, ensuring that the assets you work hard to build are protected and secured.

·  Tax benefit
 

A Term Insurance plan is a tax-saving tool that can help you save substantially every year. The premium paid towards a Term Insurance policy qualifies for a tax deduction under Section 80C of the Income Tax Act, 1961. You can claim a total deduction of up to Rs 1.5 Lakh per annum. Additionally, the death benefits paid to the plan's nominee are also entirely tax-exempt under Section 10 (10D) of the same act.  

·  Additional protection
 

You can enjoy extra Term Insurance benefits in the form of riders and further protect your savings. Term Insurance offers the option to add riders, such as critical illness coverage, permanent disability benefit, accidental death benefit, etc., at a nominal cost over the base premium. These riders can offer increased financial security and help you protect your savings in an unprecedented situation. For instance, the critical illness benefit offers lump sum payouts on being diagnosed with a critical illness. You can use this amount to pay for treatment without digging into your savings.

·  Peace of mind
 

Term Insurance helps protect the biggest asset of all - your peace of mind. With guaranteed term plan benefits, it will protect your assets, and your family will be looked after even in your absence.  

To sum it up

You can check out IDFC FIRST Bank's Term Insurance to enjoy the Term Insurance benefits mentioned above. Partnered with leading insurance providers like ICICI Prudential Life, HDFC Life, and BAJAJ Allianz, IDFC FIRST Bank offers high life covers at affordable premiums to help you secure your family's financial interest, protect your assets like a car or a home, and leave a legacy behind for your loved ones.

Disclaimer

The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject IDFC FIRST Bank or its affiliates to any licensing or registration requirements. IDFC FIRST Bank shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.