Many people ask me questions like;
‘Where should I start investing my money?’
‘How fast can I become rich by investing right now?’
For all of them I always have the first answer:
Invest in Term Insurance. Yes, it might sound a bit odd but it’s a great way to assure a tension free life for your family. Let’s see what Term insurance really is, also we will discuss on the benefits of term insurance, including tax benefits. And finally some curvyside tips on buying the best term insurance plans.
What is term insurance?
Term insurance is a type of insurance for a defined period of time in which you get death benefit but do not get maturity benefit.
In case of unfortunate death of the insurance policy holder the sum assured is given to the nominee. The amount can be obtained as lump sum, yearly or on monthly basis.
What is the premium of term insurance?
The premium is the amount to be paid for getting insured per month. The premium amount for the term insurance depends upon you age, smoking habits and previous ailments. For example, If a person is perfectly healthy at age of 22 and doesn’t have any smoking habit and previous illness then he can get a basic term plan starting at Rs 600 per month.
It is advisable to buy term insurance as soon as possible as the premium amount gets locked depending on your age, for above example it would be 600 rs per month for whole duration till the end.
What are the benefits of term insurance?
Term insurance covers all the loans and liablilities after death of policy holder, so there is no burden on the family.
Provides monthly income to the family
Very cheap insurance and very high cover upto 1.5 crore
Tax benefits under section 80C. You can claim your premium amount.
CurvySide tips for people thinking to buy a term insurance.
If you are sole earning member in family you should definitely buy a term insurance plan.
If you cannot afford high premium per month.
Always compare and buy online because you don’t get much options offline.