A Complete Guide on How to Buy Term Insurance Online

The impact on Covid-19 on a global level has made us realise how unforeseen and uncertain life can be. It has also taught us that it is essential to be prepared for what’s coming in the future. The inflation rate has seen a tremendous rise in the past few years, making it all the more difficult for us to manage our day-to-day expenses and save for our future simultaneously. Having a financial backup for the future not only secures us but also gives us peace of mind and the ability to fight the rising inflation. Investing in an insurance policy gives you financial security and ensures that you and your family are secure in case of an unforeseen and unfortunate mishap.

However, today, many people find investing in a term insurance policy a task of hassle. This often results in either delay in purchasing the policy or contemplating whether they should invest or not. To help you out, we have prepared a conclusive guide on how to buy a term insurance policy online. Let us first understand what exactly a term life insurance plan is.

What is a Term Life Insurance Plan?

A term insurance plan is an insurance policy that offers financial security and a lump sum amount of death benefits in case of unforeseen and unfortunate demise of the policyholder. This ensures that the policyholder’s family is financially backed and can continue with their lives even if the policyholder is not there to provide for them.

Benefits of a Term Life Insurance Policy

  1. Tax Benefits

Term insurance policy offers tax deduction benefits under Section 80C of the Income Tax Act, 1961. Under this plan, the policyholder can claim up to Rs. 1.5 lakhs of tax deduction benefits in one financial year. However, tax laws are subject to change from time to time.

  1. Term Insurance Plan is Affordable

Because the term insurance plan does not have an investment component, the premiums of this policy are affordable and cheaper compared to other insurance policies. This makes it possible for anyone to buy this policy.

  1. Lump-Sum Amount of Cover

A term insurance policy offers a lump sum amount of life cover to the policyholder and his family. This ensures that the policyholder and his family are financially secure and can face any unforeseen event seamlessly.

  1. Secure Your Valuable Assets

No one knows when we might face a financial emergency. In this case, we might have to take a loan or debt. In case of the untimely demise of the breadwinner, the financial burden of paying off the debt might fall on the family. In such financial constraints, the family might pay off the debt against the valuable assets, such as property, cars, etc. A term insurance plan ensures that your family does not face any financial constraints and can easily pay off the debt without having to put your valuable assets at risk.

How to Buy a Term Insurance Policy Online

You can buy a term insurance policy online by visiting the insurance provider’s official website or through the insurance company’s agent. The benefit of buying term life insurance online is that you do not have to face any hassle and can be at the comfort of your home.

You now know everything about term insurance policy, its benefits and how to invest in a term investment plan online. While it is necessary to go for the best term insurance policy, it is also necessary for us to go for a trusted and a reputed insurance company with a claim settlement ratio.

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