A Term Insurance Plan with Survival Benefits is a life insurance policy that gives coverage for a particular period and offers benefits to the insured while they are still alive. The term plan ensures financial security for the family in case of death/ disability of the insured during the policy tenure.
It also provides additional benefits, such as survival benefits on maturity, which can be used to meet long-term financial goals such as children’s education or retirement planning. This insurance plan protects against life’s uncertainties and helps cover unplanned expenses. Before buying one, understanding how this plan works and what it offers is essential. Therefore, look at some key features of a Term Insurance Plan with Survival Benefits.
What is Term Insurance Plan with Survival Benefits?
A Term Insurance Plan with Survival Benefits is a type of life insurance plan providing coverage for a specific duration. In case of death/ disability of the insured during this period, the nominee receives the policy amount as an amount nominated by the insured at the time of purchasing the policy. Additionally, if the insured survives till the maturity date, they will receive a Survival Benefit in addition to full return of premium payments made till that date.
The main benefit of opting for a Term Insurance Plan with Survival Benefits is financial security and peace of mind if something happens to you. It ensures that your loved ones have sufficient funds to cover any unplanned expenses related to your death or disability. Additionally, suppose you survive till the policy maturity date. In that case, you will receive a Survival Benefit, which can be used to meet long-term financial goals like children’s education or retirement planning.
What is the Need for a Term Insurance Plan?
There are several reasons why a term insurance plan is needed. These include:
1. To Protect Your Family
The primary purpose of purchasing life insurance is providing protection to your family if something happens to you. A Term Insurance Plan with Survival Benefits ensures that your loved ones have sufficient funds to cover any unplanned expenses related to your death or disability.
2. To Protect Your Assets
Life insurance also helps protect an individual’s assets in case they die or become disabled before the maturity date of their policy. It can help prevent any financial strain on the family due to debts, mortgages, or other liabilities at the time of death or disability.
3. To Cope with New Lifestyle Risks
As life changes, so do the risks that come with it. A Term Insurance Plan with Survival Benefits can help protect you/ your family from any unexpected financial burden related to new lifestyle risks, such as job loss or increasing medical costs.
Advantages of a Term Insurance Plan with Survival Benefits
Opting for a Term Insurance Plan with Survival Benefits has several advantages. Some of the key benefits include:
● High Sum Assured
A term plan offers a high sum assured, which can be as much as 10-12 times your annual income, depending on what you choose. This ensures that your family members have sufficient funds to cover any unplanned expenses related to your death or disability during the policy tenure.
● Flexible Payment Options
Most life insurance companies offer flexible payment options for term plans, including yearly, half-yearly, quarterly, and monthly. This makes selecting an option that fits your budget and needs easy.
● Low Premium Rates
The premiums for term plans are generally much lower than other life insurance policies, making them an affordable option.
● Survival Benefits on Maturity
When you opt for a Term Insurance Plan with Survival Benefits, you will receive a lump sum as survival benefit upon maturity of the policy, which can be used to meet your financial goals in the long term.
● Tax Benefits
Premiums paid towards a term plan qualify for tax deductions under sections 80C and 10 (10D) of the IT, Income Tax Act in India.
A Term Insurance Plan with Survival Benefits offers your family security, in terms of finances in the event of any unexpected occurrences during the policy period and also provides a one-time benefit when the policy matures. This life insurance policy is popular because it offers a high sum assured, flexible payment options, low premium rates, and tax benefits. Therefore, it is an ideal option to consider if you seek life insurance coverage with additional benefits.