Recently, there have been drastic changes in various trends around the world. Nowadays, people get married at a young age and then wait even longer to have children. Moreover, there are long-term home loans that last way longer than the average retirement age. However, the liabilities and responsibilities of those who depend on you will not necessarily be terminated after you turn 60 or retire. For this reason, many people, these days, are opting for long-term insurance plans.
However, a longer-term policy is not some type of compulsion. You can choose any policy term to suit your need. Considering the fact that term insurance plans offer death benefits after the policyholder dies during the policy term, it makes sense for young applicants to purchase long-term coverage.
What is a term plan? It is a type of life insurance policy that provides a lump sum to the beneficiary in case anything was to happen to the insured person.
Nowadays, term insurance companies in India offer offline and online term insurance plans that offer coverage for up to 85 years. If you are the only breadwinner in your family and want to secure the future of your loved ones, you may want to consider purchasing a long-term insurance plan.
Before that, however, you need to understand how to choose the best term insurance plan to meet your long-term financial goals and the pros and cons of buying it. Here are all the reasons that you should buy a term insurance duration should be longer.
- Long-term validity
A long-term insurance policy offers you a tenure starting from 15 to 20 years and can go up to 85 years or more. If you die due to any unfortunate events during this period, you do not have to worry about the financial status of your loved ones. This is a big relief at a time when newer and unknown diseases are booming.
- Helps you save tax on your income
Long-term insurance is a basic requirement that will also help you in your tax savings. According to Section 80C of the Income Tax Act, you can get a tax deduction on the premium paid. You need to make sure that you invest in schemes that suit your income. Also, the death benefit income of the online term plan is tax-free under Section 10 (10D) of the Income Tax Act.
- Concessions on premium
The best benefit you can get from a long-term insurance plan is the lowest premium rates possible. Long-term insurance plans usually come with a discounted premium rate as compared to short-term insurance plans. Moreover, if you choose the regular premium payment option, the individual premium payments will get lower as well. Since you would be stretching your premium over the course of the term of the policy, you would be paying less money at a single premium payment.
- Future goals
Most people buy term insurance coverage for over 40 years to ensure a better future for their children along with a hassle-free retirement. So, when you choose the term and coverage, make sure that you also keep inflation in mind. You never know when some unfortunate event might occur. Moreover, the money you decide to leave behind for your family might be enough for today. But the same cannot be said 10 years into the future. Hence, you have to consider the future requirements of your family and make sure that you are covered under a term policy for as long as possible.
The above points are proof enough that a long-term term insurance policy is a product worth investing in. Looking at the points above, your coverage requirements, and your budget, you can decide whether or not to purchase a long-term insurance plan. Once you have confirmed that you are buying the policy, you can secure your family’s future without any wait.