5 Benefits of Buying Long-Term Term Insurance Plans
Updated On Jun 21, 2021
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The liabilities and responsibilities towards your dependents do not necessarily end once you are 60 years old or get retired. For this reason, most people opt for long-term term insurance plans. The choice of the policy duration rests with you. You can opt for any policy term as per your requirement. Considering the fact that the term insurance plans provide death benefits after the death of the policyholder during the policy term, that is why it is advisable to buy long term coverage for your young applicants.
Below are some of the benefits of choosing a long term insurance plan that you should know before purchasing one.
Benefits of Buying A Long-Term Term Insurance Plan
Here is a list of benefits that you get on purchasing a long-term term insurance plans:
1. Long-Term Validity
A long-term term insurance policy keeps you protected for a period of 15-20 years which can also go up to 100 years (whole life term plans). During this period you do not have to worry about the finances of your loved ones in case you pass away in an unfortunate event. It is a big relief at a time when the unannounced diseases are on the rise.
2. Helps To Save Tax On Your Income
Long-term term insurance is a basic essential that can also help you in your tax savings. As per the Section 80C of the Income Tax Act you get to enjoy tax deduction on the premiums you pay. You just need to make sure that you invest in those plans which suit your income. Also, the death benefit proceeds of a term plan are tax free under Section 10 (10D) of the Income Tax Act.
3. Discounts on Premiums
The best benefit that you can get from a long term insurance plan is the lowest possible premium rates. Long-term term insurance plans usually come up with a discounted premium rate as compared to the short term insurance plans.
4. Future Goals
Most people buy term insurance cover for more than 40 years to ensure their children's good future and also your hassle free retirement. So, while you select the term and coverage make sure that you factor the inflation as well.
To End
The above mentioned parameters will help you to decide whether you want to purchase a long term insurance plan or not. You can secure your family's future without worrying about payments once you are sure you are purchasing a policy. Hence this article will help you with the benefits you are offered on purchasing a long term insurance plan.
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