15 Reasons Why Term Insurance Is Important In 2024

Life is unpredictable, and it is crucial to ensure the well-being of our loved ones. Since it is difficult to predict what the future holds for us, we need to take proactive steps to protect our family's financial security. This can only be facilitated with thorough financial planning, and this is exactly where term insurance steps in.

Term insurance provides your family with a predetermined sum assured to meet their financial obligations in the event of your unexpected demise during the policy tenure. This will help them maintain their living standards and pay for educational and other expenses as well as any unsettled debts during your absence.

In this article, let’s discuss the importance of buying term insurance for your loved ones.
 

Top 15 Benefits Of Buying Term Insurance

Here are some of the key benefits of a term insurance policy-

1. Affordable Premium
   One of the best advantages of purchasing term insurance is its cost-effectiveness. A substantial amount of life coverage can be obtained through term insurance at a fraction of the cost compared to other types of life insurance products. This makes it a suitable option for people looking for adequate coverage on a limited budget.
    
2. Simple To Understand
   Term insurance has a simple structure that enhances its accessibility for a wide range of individuals. Unlike other life insurance products, term insurance doesn't involve complex investment components or cash value accumulation. Instead, it functions on the straightforward premise of providing a death benefit during a specified term. This simplicity eliminates confusion, making it easier to comprehend the coverage and its implications.
    
3. Financial Safety
   Term insurance protects your family’s finances in the event of your unexpected demise during the policy tenure. The death benefit from term insurance will help cover day-to-day expenses, outstanding debts and other commitments, ensuring your family with a financial safety net.
    
4. Perks Of Starting Early
   If you purchase term insurance at a younger age, you will have to pay lower premiums. Premiums generally increase with age, which makes it crucial to secure coverage at an early age. 
    
5. Fixed Premium
   With term insurance, you'll pay fixed premiums throughout the policy duration. You do not need to worry about the fluctuating premium costs and can plan your budget accordingly.
    
6. Addition Of Riders
   Through the provision of an additional premium, you can enhance your term insurance coverage by including riders like critical illness riders, accidental death benefit riders, waiver of premium riders, etc. This gives you the freedom to customise the policy according to your specific requirements.
    
7. Coverage for Critical Illnesses
   Several term insurance plans allow customers to opt for add-ons or riders for additional financial protection to cover various critical illnesses. In case you get diagnosed with any of the covered illnesses, you and your family will be granted a lump sum to help pay for necessary medical expenses and other financial needs.
    
8. Coverage for Terminal Illnesseses
   Through term insurance plans, you will also be covered for terminal illnesses, providing you with a sense of comfort. If you get diagnosed with a terminal illness, you’ll receive a portion of the death benefit. With that amount, you can cover your medical expenses and concentrate on your recovery.
    
9. Accidental Death Benefit
   Several term insurance plans also provide an accidental death benefit rider. Under this add-on, an additional amount is paid to your dependents in the event of your unfortunate demise due to an accident.
    
10. Shorter Policy Tenure
    You can customise your term insurance plans according to your specific requirements, including the policy tenure. If you want coverage for a shorter duration, you can opt for a shorter tenure as well. This way, you can ensure coverage is on par with your financial responsibilities.
     
11. Prolonged Coverage
    Contrary to the above point, some term insurance plans also provide coverage for a long duration, up to 99 or 100 years. Thus, financial protection can be guaranteed for your loved ones at different life stages through extended coverage.
     
12. Enhancing Life Cover
    Under some term insurance plans, you have the option to increase the amount of coverage over time. This helps you adjust the plan according to your current financial requirements, such as home ownership, childbirth, marriage, etc.
     
13. Return Of Premium Option
    Term insurance is known as pure risk cover. There is no payback option if you outlive the policy tenure. However, a few term insurance plans also provide an option of return of premium, where the paid premiums are returned, excluding the taxes - if you outlive the policy tenure.
     
14. Various Options for Paying Out Death Benefits
    A term insurance plan allows you to choose between distinct death benefit payout options. You can configure how you want your nominee to receive the claim amount - whether as monthly installments, a lump sum, or a combining both, based on their financial preferences. 
     
15. Tax Benefits
    You are also eligible for tax deductions under the Income Tax Act's Section 80C for premiums paid under your term insurance plan. Furthermore, the death benefit given to your nominee in case of your demise is also exempt from taxation under Section 10(10D). Term insurance plans not only provide financial safety for your loved ones but also present an opportunity for tax optimisation.
     

Why Choose Term Insurance Plans?

Term insurance plans are a key component of a well-rounded financial plan, presenting a combination of affordability, flexibility, and extensive coverage. They act as a foundational pillar and are an essential element of life insurance, catering to the dynamic needs of families and individuals. They come with various benefits and are transparent and simple, making them a preferred choice among many people. 

Term insurance provides significant protection against unforeseen events, especially if you have unsettled loans, dependents, and other financial responsibilities. You can tailor the duration of your term insurance plan based on your particular goals and financial obligations.

Through term insurance, you can offer your loved ones peace of mind, knowing they are safeguarded from life’s uncertainties. Thinking of buying a term insurance policy? Purchasing it from SMC Insurance is an easy process. Let’s look at the steps one by one!
 

How To Buy The Best Term Insurance Plan From SMC Insurance?

Below is the step-by-step process through which you can purchase a term insurance plan from SMC Insurance -

Step 1: Visit our website- https://www.smcinsurance.com/

Step 2: Click on ‘Life Insurance’.

Step 3: Make sure that you enter your complete name, date of birth, gender and contact number.

Step 4: You will be asked a few basic questions about your lifestyle, such as smoking, annual income, desired policy term and how much coverage you want to purchase.

Step 5: Click on ‘Compare Quotes’.

Step 6: You will be able to view specific term insurance plans. Additionally, you can change several policy aspects, such as premium payment frequency, insurance coverage amount, policy type, etc. and check how the premiums vary.

Step 7: You can download the brochures to learn more about the plans. 

Step 8: You can click on the ‘Buy Now’ option after choosing your preferred term insurance plan to proceed with your application.
 

Wrapping Up!

Life’s uncertainties can bring unexpected challenges, and term insurance acts as a reassuring lifeline for your family - should the worst happen. It provides a predetermined sum that helps them meet various financial needs and maintain stability in your absence. Above all, term insurance provides more than just financial security; it grants us peace of mind. The knowledge that your family is well-protected and financially taken care of in uncertain times instils a sense of confidence as you navigate life’s unpredictable journey.